Economists believe the Bank of Canada is likely to keep its main interest rate unchanged on Wednesday, as data suggest the economy has shifted into a lower gear after 10 rate increases over a 16-month span.
Most analysts also believe the next change from the Bank of Canada on rates will be a cut, starting in the first half of next year.
Ten economists who participated in a survey by The Wall Street Journal said they expect the Bank of Canada to leave the benchmark rate unchanged at 5.0%, after two quarter-point rate increases in June and July. The back-to-back rate rises ended a short-lived pause by Canada’s central bank, as officials expressed concern that borrowing costs needed to go higher to moderate stronger-than-expected consumer spending and job creation.