Canada interest rate – BOC maintains policy rate 25 Oct 2023
Canada interest rate: In September, Canada saw a significant deceleration in its inflation rate, mainly due to decreasing prices in categories like travel, durable goods, and groceries. This slowdown prompted the Bank of Canada to…
Canada interest rate: In September, Canada saw a significant deceleration in its inflation rate, mainly due to decreasing prices in categories like travel, durable goods, and groceries. This slowdown prompted the Bank of Canada to maintain its target for the overnight rate at 5% in its most recent decision.
In September, the Consumer Price Index (CPI) saw a monthly decrease of 0.1%, marking the first such decline since January. With the recent decision by the Bank of Canada to maintain the 5% Canada interest rate, the overall outlook may become clearer, and we could anticipate stable or even lower rates in the upcoming months. However, this outcome hinges on the sustainability of the inflation moderation. The Bank of Canada is expected to persist in this strategy as part of its plan to guide inflation back to its 2% target.
The stability of Canada interest rate reduces uncertainty in the Canadian interest rate landscape and could potentially result in an increase in Canadian home prices during the upcoming winter season.
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