After 6 consecutive rate hikes, the end to aggressive increases may be near. Bank of Canada Tiff Macklem nodded to the possibility in the press conference following the last rate hike in October when he said “We are getting closer to the end of this tightening phase but we’re not there yet,”
| Date | Target (%) | Change (%) |
|---|---|---|
| December 7, 2022 | 4.25 | +0.50 |
| October 26, 2022 | 3.75 | +0.50 |
| September 7, 2022 | 3.25 | +0.75 |
| July 13, 2022 | 2.50 | +1.00 |
| June 1, 2022 | 1.50 | +0.50 |
| April 13, 2022 | 1.00 | +0.50 |
| March 2, 2022 | 0.50 | +0.25 |
| *As of 2021, a change takes effect the day after its announcment | ||
Source: Policy Interest Rate – Bank of Canada
Macklem talked about GDP growth reaching zero and staying there for the next 3 quarters before picking up. He went on to say that this will give supply the opportunity to catch up with demand, stabilize prices, and decrease inflation. Overall, the BoC is projecting a return to the inflation target by 2024.
“Inflation has declined since June, primarily due to lower gasoline prices. It continues to decrease over the projection horizon, reaching around 3% by the end of 2023 and returning to the 2% target by the end of 2024.” Monetary Policy Report – October 2022 (bankofcanada.ca)
Schedule of BoC Interest Rate Announcements 2023
- Wednesday, January 25*
- Wednesday, March 8
- Wednesday, April 12*
- Wednesday, June 7
- Wednesday, July 12*
- Wednesday, September 6
- Wednesday, October 25*
- Wednesday, December 6
*The Monetary Policy Report has published concurrently with the January, April, July and October rate announcements.
Source: Bank of Canada publishes 2023 schedule for interest rate announcements – Bank of Canada
