Bank of Canada holding key interest rate steady at 5 per cent

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OTTAWA - The Bank of Canada is holding its key interest rate steady at five per cent.

This is a breaking news update. More information to come.

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The Bank of Canada is set to announce its interest rate decision this morning as forecasters widely expect the central bank to continue holding its key rate steady.

The Bank of Canada opted to maintain its key interest rate at five per cent at its last two announcements as the economy shows clearer signs of a slowdown.

Last week's GDP report showed the economy shrank in the third quarter, while the country's unemployment rate ticked up once again in November.

Inflation in Canada has also slowed considerably, with the annual rate coming in at 3.1 per cent in October.

As the economy softens and inflation comes down, economists will be watching for any signs from the central bank on when to expect future interest rate cuts.

So far, the central bank has dismissed any talk of rate cuts and instead maintained it's prepared to raise rates again if needed.

This report by The Canadian Press was first published Dec. 6, 2023.