Bank Of Canada Leaves Rates Unchanged As Inflation Remains 'Too High'

(RTTNews) - The Bank of Canada announced its widely expected decision to once again leave interest rates unchanged on Wednesday, saying inflation is still "too high."

The Canadian central bank held its target for the overnight rate at 5.0 percent, with the bank rate at 5.25 percent and the deposit rate at 5.0 percent.

The accompanying statement said inflation is still "too high" but noted consumer price inflation and core inflation have eased further in recent months.

The Bank of Canada said its Governing Council will be looking for evidence the downward momentum for inflation is sustained.

"Governing Council is particularly watching the evolution of core inflation, and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour," the bank said.

The Bank of Canada said it expects consumer price inflation to be close to 3.0 percent during the first half of this year, move below 2.5 percent in the second half and reach its 2.0 percent inflation target in 2025.

Meanwhile, the Canadian central bank upwardly revised its forecast for global GDP growth to 2.75 percent in 2024 and about 3.0 percent in 2025 and 2026.

Canadian GDP is forecast to grow by 1.5 percent in 2024, 2.2 percent in 2025 and 1.9 percent in 2026, the Bank of Canada said.