No change on interest rate as Bank of Canada sticks to 5%

The Bank of Canada kept its key interest rate unchanged at 5% at its meeting on Wednesday, January 24, 2024. This decision was made while inflation in Canada is still at a high level. Inflation in Canada reached 7.5% in December 2023, the highest level in 30 years.

The Bank of Canada said there were still concerns about inflation, despite the rate of inflation easing in December. The central bank believes that increasing interest rates can help reduce inflation.

However, the Bank of Canada is also concerned about the impact of interest rate hikes on the economy. An increase in interest rates can reduce economic growth.

The Bank of Canada announced that it will review interest rates again in March 2024.

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