The Bank of Canada on Wednesday left its main interest rate unchanged at 5%, saying steeper borrowing costs are dampening consumption, and bringing supply and demand closer to balance.
It warned that progress toward hitting its 2% inflation target remains slow, with little downward momentum to date on core prices, which strips out volatile items such as food and energy.
Bank of Canada Gov. Tiff Macklem, whose mandate is to set monetary policy to achieve and maintain 2% inflation, said he would consider raising rates again until there is “clear downward momentum” in core inflation. “We’re going to take our decisions one at a time, based on the best available data,” Macklem said.
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