Bank of Canada Keeps Key Interest Rate Target on Hold

  • 📰 SooToday
  • ⏱ Reading Time:
  • 56 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 47%
  • Publisher: 85%

Finance News

Bank Of Canada,Interest Rate,Global Economy

The Bank of Canada has decided to maintain its key interest rate target at five per cent. The central bank expects the global economy to continue growing at a rate of about three per cent, with inflation in most advanced economies easing gradually.

OTTAWA — The Bank of Canada kept its key interest rate target on hold at five per cent on Wednesday. Here is the text of the central bank's decision:

The Bank expects the global economy to continue growing at a rate of about three per cent, with inflation in most advanced economies easing gradually. The U.S. economy has again proven stronger than anticipated, buoyed by resilient consumption and robust business and government spending. U.S. GDP growth is expected to slow in the second half of this year, but remain stronger than forecast in January. The euro area is projected to gradually recover from current weak growth.

In Canada, economic growth stalled in the second half of last year and the economy moved into excess supply. A broad range of indicators suggest that labour market conditions continue to ease. Employment has been growing more slowly than the working-age population and the unemployment rate has risen gradually, reaching 6.1 per cent in March. There are some recent signs that wage pressures are moderating.

Overall, the Bank forecasts GDP growth of 1.5 per cent in 2024, 2.2 per cent in 2025, and 1.9 per cent in 2026. The strengthening economy will gradually absorb excess supply through 2025 and into 2026.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 8. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of England keeps key interest rate steady and avoids explicit signals that cuts are imminentLONDON (AP) — The Bank of England kept its main interest rate unchanged at a 16-year high of 5.25% on Thursday even though inflation continues to drop from multi-decade peaks.
Source: SooToday - 🏆 8. / 85 Read more »