Between interest rate increases of over 450 basis points (4.50%) since April 2022, and an expectation of persistently high inflation, both Canadian consumers and businesses say they are now feeling the impact.
Canada's economic activity in July was unchanged from the previous month, marking the second straight month of weak GDP results.
BMO Economics released its updated rate forecast today, reducing the amount of monetary policy easing it expects from the Bank of Canada in 2024.
When deciding to leave interest rates unchanged at its Sept. 6 monetary policy meeting this month, the Bank of Canada determined the past hikes are working to slow the economy.
Despite the larger-than-expected rise in inflation in August, the Bank of Canada says that such "ups and downs" are not unexpected.
Inflation heated up more than expected in August, raising the odds of yet another Bank of Canada rate hike in October.
Housing markets in the country's largest markets continued to moderate in August, following the Bank of Canada's recent interest rate hikes over the summer.
Surprisingly strong employment gains in August are keeping the door open to an additional Bank of Canada rate hike this year, economists say.
While the Bank of Canada is "encouraged" by the way higher rates are working to slow inflation, Governor Tiff Macklem said it's possible interest rates aren't yet high enough.
The Bank of Canada opted to leave interest rates unchanged today but maintained its hawkish bias, confirming it won't hesitate to hike rates further if inflation doesn't continue to trend downward.