Bank of Canada holds interest rate steady at 4.5%

The Bank of Canada announced today that its key interest rate will continue to hold steady at 4.5 per cent, a move that was universally expected by economists.

The central bank says recent data is increasing its certainty that inflation will keep falling in the coming months, dropping three per cent by mid-year.

The country’s annual inflation rate dropped to 5.2 per cent in February, marking the second month in a row it came in lower than projected.

READ MORE: Bank of Canada raises key interest rate by a quarter point to 4.5%

The Bank of Canada continues to expect the inflation rate to hit its target of two per cent by the end of 2024.

The central bank has bumped up its forecast for 2023 with growth coming in stronger than anticipated this year.

The Bank of Canada says it will keep assessing whether interest rates are great enough to bring inflation back to target, keeping the door open to more rate jumps if necessary.