Bank of Canada Expected to Pause Interest Rate Hikes After Hitting 5% As Inflation Cools, Risk of Recession Remains

Economists believe Bank of Canada is done raising interest rates after hitting 5% and will hold rates steady for at least 6 months.

Inflation fell more than expected in September, reducing need for further rate hikes.

Economy is showing signs of strain from rate hikes, likely to slow further.

Majority of economists predict Bank of Canada will cut rates by mid-2024 as economy cools.

Risk of recession seen as low but still present, with a third of economists forecasting contracting output.