The Bank of Canada has held its trendsetting interest rate at 5.0% for a third straight setting and talk of further increases has been all but silenced.
In the statement that came with the most recent rate announcement, The Bank offered a number of reasons for the decision to hold steady:
– higher rates are “clearly restraining spending”
– the economy “is no longer in excess demand”
– the general economic slowdown is reducing inflationary pressures
Even though The Bank said it will hike again, if necessary, most market watchers are looking into their crystal balls trying to predict when, and by how much, The Bank will be cutting rates.