Bank of Canada Holds Rates Steady For Now As Higher Rates Slow Economy, Curb Inflation
• Higher interest rates will continue slowing Canadian economy in 2024, paving way for lower inflation • Effects of past rate hikes still working through economy, limiting growth and employment • Weakness needed to get inflation back on target, then rate cuts can be considered • Too early to consider rate cuts now; world volatility requires central bank to be nimble • Bank of Canada holding rates steady for now; will explain decisions more with news conferences at each rate decision