On Thursday, the Bank of Canada decided to maintain its overnight interest rate at 5%, citing Canada's slowing economy and signs of approaching supply-demand equilibrium. As many economists had predicted and as requested by numerous policymakers, the Bank of Canada has finally chosen not to increase interest rates, at least for now. This decision may bring some relief to those who have variable-rate mortgages in the current economic conditions. The central bank has repeatedly emphasized its desired inflation target of 2%, which we are gradually approaching.
Canada's economic growth in the current year has been around 1%, and it is expected to remain sluggish in 2024, with a growth rate of about 2.5% in 2025.

News Sources