Skip to main content

Scroll Down

Special Report

Canada Monetary Policy
Research Brief

April 2024

Central Bank Maintains Overnight Rate,
While Turning Slightly More Dovish

Central Bank holds policy rate for sixth consecutive meeting. The Bank of Canada left its policy rate unchanged at 5.0 per cent in April, a move widely anticipated among economists and investors. While inflation has fallen by more than expected over the past two months and the unemployment rate hit a 26-month high in March, Canada’s Central Bank still believes risks remain and wants to see further evidence that underlying inflationary pressures are continuing to moderate. The BoC cited shelter inflation as one of its main concerns. However, the Bank also stated that while inflation is still too high, the three-month annualized rate of core inflation suggests further easing ahead, and that the monetary authority is beginning to see what is needed in order to bring inflation back to the Bank’s target. A mid-year rate cut still holds as a likely outcome.

Related Research

Back to top