Bank of Canada keeps interest rate unchanged, warns of future hikes

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Bank of Canada keeps interest rate unchanged, warns of future hikes
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The Bank of Canada left its benchmark interest rate unchanged at 5.0 per cent for the third consecutive decision on Wednesday and continued to warn future hikes aren't off the table, even as market watchers shift their eyes toward rate cuts in 2024.

The Bank of Canada left its benchmark interest rate unchanged at 5.0 per cent for the third consecutive decision on Wednesday, the final announcement in 2023. The central bank kept its policy rate at 5.0 per cent in its third consecutive decision and its final rate announcement of 2023.

In a statement announcing the widely expected hold, the Bank of Canada pointed to a weakening economy and easing in price pressures like consumer spending as signs that tighter monetary policy is working to bring down inflation. However, the Bank of Canada's governing council warned that it remains prepared to raise the policy rate further if it doesn't see more signs of progress in its preferred core inflation metrics and other factors like wage growth, inflation expectations, and consumer price setting behaviour

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