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  • Accelerating Inflation Without Economic Growth: Bank of Canada Holds Rate at 5.0%, with Bias to Tighten Further. QT Continues.

Accelerating Inflation Without Economic Growth: Bank of Canada Holds Rate at 5.0%, with Bias to Tighten Further. QT Continues.

September 07, 2023

by Wolf Richter Wolf Street

BoC already shed 50% of its QE assets. And the shedding continues.

The Bank of Canada left its policy rates unchanged at its meeting today after two consecutive rate hikes following its spring “pause”:

  • Overnight rate: 5.0%, the highest in 22 years

  • Bank rate: 5.25%

  • Deposit rate: 5.0%

And it inserted a clear bias for further tightening: It “remains concerned about the persistence of underlying inflationary pressures, and is prepared to increase the policy interest rate further if needed,” it said in the statement.