The Bank of Canada is set to announce its interest rate decision this morning as forecasters widely anticipate the central bank will hold its key lending rate steady.
Canada’s inflation rate ticked up to 3.3 per cent in July year-over-year, but economists say cracks emerging in the economy will likely sway the central bank against further rate hikes.
Statistics Canada reported last week real gross domestic product contracted in the second quarter.
Meanwhile, the unemployment rate has been trending upwards for three consecutive months, reaching 5.5 per cent.
The Bank of Canada’s key interest rate currently sits at 5.0 per cent — the highest it’s been since 2001.
The announcement will be made via press release and will be followed by a news conference with governor Tiff Macklem tomorrow.
This report by The Canadian Press was first published Sept. 6, 2023.