The Bank of Canada maintains its interest rate at 5%.

By: 600011 On: Dec 7, 2023, 2:43 PM

In its final rate announcement of the year, the Bank of Canada maintained interest rates at 5.0 percent. The Bank of Canada has kept interest rates unchanged for the third time in a row, citing a weakening economy and lower inflation. However, the Bank of Canada expressed concern that progress toward the bank's 2% target would be slow. The central bank's new economic forecasts indicate that economic growth will remain weak into next year. Meanwhile, the central bank predicts that inflation will return to the 2.5 percent target by 2025 but will remain high in the short term.