The Bank of Canada raised interest rates at its Wednesday meeting by 25 basis points, as expected, to 5%.
A statement accompanying the meeting showed strong central bank tightening as it raised its 2023 growth expectations for Canada’s economy to 1.8% from previous expectations of 1.4%.
He indicated that inflation is declining at a slow pace and will not reach the 2% target before mid-2025, six months behind his previous expectations.
