Jun 05, 2023
By Jane Brown
For the first time in months, there is a possibility of another Bank of Canada interest rate hike this week on Wednesday June 7th.
The central bank has kept interest rates steady since January, but a run of strong economic data over the past month has raised doubts about whether borrowing costs are high enough to bring inflation under control.
The latest numbers released last week show the Canadian economy grew faster than expected in the first three months of the year, fueling speculation the Bank of Canada might raise rates this week.
This will mark the fourth interest rate announcement of 2023. Four more are scheduled to follow this year.
In 2022, the bank hiked its interest rate seven times. Then, in January 2023, another increase followed, bringing the key rate to 4.5 per cent. Since then, the central bank has held its key rate at 4.5 per cent, precisely as experts predicted.