Interest Rate to Remain at 5%

Wednesday, 6 September 2023 10:55

By Linda Morgan

The Bank of Canada isn't changing the key interest rate, due to a weakening economy

The Bank of Canada isn't changing its key interest rate.

The bank announced this morning the rate will stay at 5 percent, due to a weakening economy.

It also notes previous hikes need more time to take effect.

Experts were predicting the decision due to a rising unemployment rate and an economic decline in the second quarter.

The bank adds it's still worried about inflation and hasn't ruled out future rate hikes.

In July, the country's inflation rate was 3.3 percent, and it's expected to stay around that point for the rest of the year.

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