Inflation drops slightly but Bank of Canada holds interest rates steady

Interest rates were held steady this week by the Bank of Canada. It was the sixth consecutive month since July that the policy rate—the key interest rate set by the bank—has remained at five percent. The Consumer Price Index showed that inflation in Canada dropped to 2.8 percent in February from 2.9 percent in January. Bank of Canada governor Tiff Macklem said this week, “I realize that what most Canadians want to know is when we will lower our policy interest rate. What do we need to see to be convinced it’s time to cut? The short answer is we are seeing what we need to see, but we need to see it for longer to be confident that progress toward price stability will be sustained.”