The Bank of Canada is set to announce its latest interest rate decision this morning along with new economic projections.
Forecasters are widely anticipating an increase of one quarter of a percentage point, which would bring the central bank’s key rate to 5 per cent.
The central bank raised interest rates last month, ending an previous pause on rate hikes.
It cited concern over a string of hot economic data, which suggested to its governing council that interest rates were not high enough to cool the economy and bring inflation down.
Economists say another rate hike is likely today, given the labour market is still tight and inflation pressures are still high.
Canada’s annual inflation rate fell to 3.4 per cent in May, but less-volatile measures suggest prices are still rising rapidly.
This report by The Canadian Press was first published July 12, 2023.