Bank of Canada holds key interest rate at 2.25%

The Bank of Canada held its benchmark interest rate at 2.25 per cent on Wednesday, a move widely expected by economists. The market had 93.5 per cent odds that the BoC would hold, according to LSEG data.

The BoC itself had signalled that its easing cycle was likely over at its October announcement, saying the current rate was “at about the right level” to temper inflation and keep the economy moving. Since then, BMO chief economist Douglas Porter wrote in a note to clients late last week, economic data “has been so firmly planted on the strong side that market chatter is now that the next move could be a hike (albeit well down the road).”

At the top of the list of strong data was last week’s Labour Force Survey, which featured a third-straight surprise job gain of significant proportions and brought net added jobs to 181,000 since September. GDP figures for the third quarter were similarly much more robust than expected, and October inflation dropped to 2.2 per cent from 2.4 per cent.

https://ca.finance.yahoo.com/news/bank-of-canada-expected-to-hold-benchmark-interest-rate-today-as-market-chatter-turns-to-possible-hikes-ahead-120009898.html