Bank of Canada holds key interest rate at 5%Synergy Mortgage
The Bank of Canada (BoC) is holding its key interest rate at 5%, with the bank rate at 5.25% and the deposit rate at 5%.
This is the third consecutive rate hold of the year and the BoC’s seventh rate announcement.
In 2022, the BoC hiked its interest rate seven times. Then, in January 2023, another increase followed, bringing the key rate to 4.5%.
The Bank held its key rate at 4.5%, precisely as experts predicted, until June 7, when it was raised to 4.75%. On July 12, the BoC brought the key rate to 5%, with the bank rate at 5.25%, and on September 12, it announced that it was holding those rates.
“In Canada, there is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures,” the BoC stated in an update on Wednesday morning.