Bank of Canada Holds Interest Rates Steady, Cites Progress on Inflation But Risks Remain
- Inflation easing from 3% earlier in 2024 to a projected 2.5% by end of 2023, with a return to 2% target by 2025
- Progress in cooling inflation, but costs in services and food remain high
- Risks that house prices, wage growth, and global commodity prices could push inflation higher
- Want to see sustained decline in inflation before rate cuts to avoid jeopardizing progress
- Economic growth expected to pick up in 2nd half of 2023 and stronger in 2024-2026
