Economists expect the Bank of Canada will hold interest rates at its key policy announcement next Wednesday, but experts say the bigger question is what happens after the March meeting.
According to economists tracked by the Bloomberg terminal, experts anticipate the Canadian central bank will hold its key policy rate at 4.50 per cent.
“There are still 65 per cent of all components of CPI that are still growing at more than five per cent,” St-Arnaud explained. “The U.S. Federal Reserve is probably going to be tightening at least two more times, if not more. For the Bank of Canada, if inflation remains sticky and if the economy does not break down, are they going to be able to sit there with the policy rates they have and pause as they suggested?”
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