The Bank of Canada upped its growth projection for this year while maintaining its benchmark overnight interest rate at 4.50%, as was expected. It also signalled the probability of a recession.

The Bank of Canada (BoC) became the first major central bank in the world to suspend its tightening effort last month. Governor Tiff Macklem stated that he wanted to give the eight prior rate hikes time to take effect and would postpone any increases as long as inflation stayed below expectations.

The Bank of Canada (BoC) halted its tightening campaign last month, making it the first significant central bank in the world to do so. Governor Tiff Macklem stated that he wanted to give the eight prior rate hikes time to take effect and would postpone any increases as long as inflation remained within expected bounds.

The Bank anticipates that CPI inflation will slump on a fast pace to roughly 3% in the middle of this year and then more gradually to the 2% objective by the end of 2024.