Reuters

Bank of Canada holds key interest rate at 5%

Officials at the central bank signalled that they still expect to cut their key interest rate three times

The Bank of Canada held its key interest rate steady at five per cent on March 6, 2024.

The decision was widely expected by economists, who had predicted that the central bank would hold its key rate steady in the face of rising inflation and a slowing economy.

In a statement, the Bank of Canada said that it is "increasingly confident" that inflation will return to its two per cent target over the medium term.

The bank also said that it is "cautiously optimistic" about the economic outlook, but that it is "prepared to adjust monetary policy as necessary to support economic growth and keep inflation low and stable."

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