What economists are expecting from Wednesday's Bank of Canada decision
BNN Bloomberg
The Bank of Canada is set to release its latest interest rate decision on Wednesday and economists are largely anticipating rates to remain on hold yet again.
The overnight lending rate has been on pause at 4.50 per cent since January, and while there have been growing calls for a possible hike this week and even more so for July, the average consensus between economists tracked by Bloomberg is for a rate pause in June.
“We lean to a pause this week, but wouldn’t be shocked if they opt to hike,” Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO Capital Markets, wrote in a note to clients on Monday.
He pointed to the strength in Canada’s gross domestic product (GDP), which grew at an annualized rate of 3.1 per cent in the first quarter of 2023, and increased housing activity, as key economic data points the bank will take into consideration ahead of Wednesday’s decision.
