Will the Bank of Canada cut interest rates? What economists expect

With the Bank of Canada set to provide an update on interest rates on Wednesday, economists are expecting no changes this time as the trade war has increased economic uncertainty.

Many Canadians are eagerly watching the Bank of Canada’s interest rate announcement this week to see if it could mean a bit more breathing room for their finances.

But many experts believe the current rates for those who make regular payments on loans like a mortgage won’t be changing any time soon.

This is partly to do with how U.S. President Donald Trump’s tariffs are impacting Canada’s economic landscape.

Canada’s central bank could potentially change interest rates on Wednesday. Although most experts believe that amount won’t rise in the near future, they say it is more likely rates will stay the same rather than come down.

“The Bank of Canada has little confidence in the outlook,” Bank of Nova Scotia vice-president and head of capital markets Derek Holt says.

“GDP is tracking a little firmer than anticipated and (the Bank of Canada) is in no rush to react.”

Unlike regular banks — like those on Bay Street, for instance — the Bank of Canada acts in the interest of the economy as a whole rather than for its own profit, and is independent of the government and its policies.

Its mandate is to maintain economic stability, and it does so by regulating money supply and interest rates — the amount regular banks and other lenders can charge customers to borrow money.