Canada Global(Web News) The Bank of Canada has once again announced to maintain the interest rate at 5 percent. At the same time, the bank ignored the demands to reduce these interest rates. The bank has also said that inflation is still so high that it is not possible to even think about reducing interest rates.
Speaking at a news conference after the interest rate announcement on Wednesday, Governor Tiff McCallum acknowledged that inflation continues to decline and the economy is weakening. But he said that there is a lot of hidden price pressure, so he does not want to take any risk at this time.
While the bank’s decision on Wednesday did not surprise everyone, some economists believe the first rate cut will take place in June. These economists believe that the decade’s high interest rates will further weaken Canada’s economy.
