Central bank says more time is needed to assess impact of high interest rates on inflation ( The Canadian Press)

By The Canadian Press

Bank of Canada holds key rate steady at five per cent, says too early to cut

Mar 6, 2024 | 8:14 AM

OTTAWA – The Bank of Canada is holding its key interest rate steady at five per cent today, arguing it is still too soon to start lowering rates.

The central bank says inflation has continued to ease and the economy is weakening but underlying price pressures are still persistently high.

Canada’s inflation rate dropped to 2.9 per cent in January, falling within the Bank of Canada’s one-to-three per cent target range.

According to his prepared remarks, governor Tiff Macklem says the central bank needs to give higher rates more time to do their work.