Bank of Canada holds interest rate steady at 5%

For now, the Bank of Canada holds interest rates steady at 5% as the economy begins to cool. However, the Bank won't rule out further hikes despite mounting signs that economy is slowing.

This was an expected move by economists and other financial observers, as the central bank's rate hikes since 2022 have made major breakthroughs on bringing down runaway inflation.

"The impact of rate moves can often take up to 18 months to be fully felt, so after taking its lending rate from functionally zero to five per cent in barely a year-and-a-half, there is a danger of overshooting and slowing the economy by too much."