Bank of Canada Holds Rate Steady Again, Says Inflation Still Too High to Consider Cuts

The Bank of Canada held its key interest rate at 5% again, saying it's still too soon to consider rate cuts while underlying inflation persists.

Governor Tiff Macklem said global risks like attacks on shipping routes could feed higher inflation if they escalate. Domestically, inflation pressures are gradually easing but could stall.

Macklem said higher interest rates need "more time" to reduce inflation. It takes 18-24 months for rate changes to fully impact the economy. It's still too early to consider lowering rates.

Inflation eased to 2.9% in January, but groceries were still getting more expensive. GDP grew 1% in January, one of the weakest recent years.

Variable rate mortgage holders like Dan and Maggie Dumouchel have struggled with higher payments. Dan says "it's been impossible" and "devastating" to stay in their home with such high rates.