The Bank of Canada’s decision to keep its policy rate unchanged this morning is good news for Canadian businesses and consumers. The Bank’s aggressive strategy on interest rates has been having the desired effect, with inflation ticking steadily downwards in recent months and economic growth largely remaining flat at the end of 2022.

The Canadian central bank’s trendsetting interest rate has jumped by 425 basis points throughout the last 12 months, marking a dramatic shift from the low-rate environment that prevailed at the height of the COVID-19 pandemic. Despite this, the Bank’s latest decision to maintain the current interest rate indicates that it is confident in its strategy and that the Canadian economy is on track for recovery.

This stability in interest rates will give Canadian businesses and consumers more certainty in their financial planning, allowing them to focus on growing and investing in their businesses and personal finances. 

While the Bank of Canada’s decision to keep interest rates unchanged comes as a relief, it remains unclear whether the Bank will hit pause on hikes entirely for the remainder of the year. A resilient labour market, with Canada adding 150,000 jobs in January, and the seeming willingness of the US Federal Reserve to continue increasing rates, may potentially leave the door open to further moves later in 2023.

In conclusion, the Bank of Canada’s decision to maintain its trendsetting interest rate at 4.5% in today’s announcement is a positive development for Canadian businesses and consumers. The Bank’s strategy is having the desired effect, and the stability in interest rates will provide more certainty and confidence for those looking to invest and grow their finances.