Posted 11/1/2023, 10:01:58 PM
Bank of Canada Holds Rate Steady, Citing Upcoming Mortgage Renewals and Recession Risks
- Bank of Canada held rate at 5% partly due to upcoming mortgage renewals and their economic impact
- Governor says previous rate hikes still filtering through economy, including mortgage renewals
- As people renew at higher rates, households will feel squeeze more directly
- Bank wants to avoid recession, but slower growth needed to fight inflation
- Recent data suggests economy may have entered mild technical recession due to higher rates weighing on spending