09/09/2023
The Bank of Canada kept its overnight rate at 5% and continued quantitative tightening.
Inflation in advanced economies is easing, but core inflation remains elevated. Global growth slowed, particularly in China. The US and Europe saw varying economic performances. Global bond yields and oil prices are up.
Canada's economy slowed in Q2, with a 0.2% contraction due to weaker consumption and housing, wildfires, and higher interest rates. Inflation remains around 3%, posing risks.
The Bank aims to relieve inflation pressures with current policies but is ready to increase rates if needed. They will closely monitor inflation dynamics and economic factors.
The next rate announcement is on October 25, 2023, with a full outlook in the Monetary Policy Report. The Bank is committed to restoring price stability.
