Bank of Canada to hold interest rates this year, show patience with energy inflation: poll
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- Bank of Canada will keep its overnight rate at 2.25% on April 29 and likely through 2024, per a Reuters poll of 41 economists.
- Economists (41 surveyed) – 33 predict the rate stays unchanged this year; 14 of 34 foresee at least one hike by March 2025.
- Inflation in March was 2.4%, within the BoC’s 1‑3% target range despite rising fuel prices linked to Middle‑East tensions.
- Labor market – Unemployment forecast for 2026 trimmed to 6.6% (down from 6.7% in January), indicating a choppy but not tightening job market.
- Janice Charette says the USMCA renegotiation will continue past the July 1 deadline, but energy price stabilization will shift focus to trade issues.
Why it matters: Mortgage borrowers keep borrowing costs steady as the BoC leaves the 2.25% rate unchanged through 2024, while exporters gain a stable currency but the government foregoes a tool to curb inflation if energy prices stay high.
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