Bank of Canada: the key rate should be maintained
The Bank of Canada (BDC) should opt to maintain its key rate next week, as inflation continues to slow in the country. An announcement will be made on Wednesday, April 12. New economic projections on growth and inflation will then be communicated.
Economic activity remains stronger than expected in Canada, but the slowdown in inflation should lead the BDC to maintain its key rate at 4.5%, estimates the chief economist of the Bank of Montreal, Douglas Porter.
“When we combine all of these things together, it certainly looks like the central bank is likely to keep rates steady for now,” he told The Canadian Press< /em>.
Remember that the key rate is currently at its highest level since 2007. Despite this, growth and employment are showing great resilience. Real gross domestic product rose 0.5% in January. According to an estimate by Statistics Canada, it increased again in February, this time by 0.3%.
The policy rate is revised eight times a year. The successive increases observed in recent times are intended to weaken demand so that prices return to a normal course.