Bank of Canada keeps central interest rate at five percent

Yesterday, the Bank of Canada announced that it is keeping its policy rate at five percent, which it has maintained since July 2023. “We don’t want to keep monetary policy this restrictive for longer than we have to. But nor do we want to jeopardize the progress we’ve made in bringing inflation down,” said bank governor Tiff Macklem. Canada’s inflation rate settled to 2.9 percent in January. The Bank of Canada’s target inflation rate is two percent.