Bank of Canada Holds Rates Steady, But Signals Possible Cuts Ahead As Inflation And Growth Cool
• Bank of Canada expected to hold interest rates steady at 5% at its first policy meeting of 2024, but hints of future rate cuts will be watched for
• Inflation has slowed from 2022 peak but remains sticky around 3-4%; wage growth also still high
• Economic growth stagnant and risks of recession remain, supporting case for eventual rate cuts
• Markets betting on 60% chance of first rate cut in April, but analysts see cuts more likely in mid-2023
• Watch for Bank's language around inflation outlook, quantitative tightening program as hints of policy direction