![\"Bank](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2023\/10\/AdobeStock_24452989.jpg\")
<\/a>All signs point towards a slowing economy versus earlier in the year when the bank was continually trying to tamp down inflation with regular interest rate hikes.<\/p>\n\n\n\n
Borrowing and spending screeched to a halt after the bank took the interest rate from practically zero per cent to five per cent in a little over a year and a half. As a result, the inflation rate dropped from 8.1 per cent in the summer of 2022 to 3.8 per cent last month.<\/p>\n\n\n\n
Although the bank believes that inflation is trending in the correct direction, it was evident from its statement announcing its decision that it does not believe the inflation strain on Canadians has completely ceased. The reason? The slowdown isn\u2019t happening quickly enough.<\/p>\n\n\n\n
“In Canada, there is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures,” the bank said. “Consumption has been subdued, with softer demand for housing, durable goods and many services.”<\/p>\n\n\n\n
“Governing Council is concerned that progress toward price stability is slow and inflationary risks have increased and is prepared to raise the policy rate further if needed.”<\/p>\n\n\n\n
Look to 2025 for the inflation rate to return to its target of two per cent, according to the bank\u2019s projections. This forecast may suggest the bank prepares to hold steady until that occurs.<\/p>\n
Homeowners holding their breath on the Bank of Canada’s benchmark rate announcement can breathe again, at least for the meantime.<\/p>\n","protected":false},"author":49,"featured_media":227992,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"content-type":"","apple_news_api_created_at":"2023-10-25T18:12:23Z","apple_news_api_id":"1423e155-ea6e-455f-b0e9-b4f2babfa45d","apple_news_api_modified_at":"2023-10-25T18:12:23Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AFCPhVepuRV-w6bTyur-kXQ","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[11108],"tags":[11383,11163],"coauthors":[10332],"apple_news_notices":[],"yoast_head":"\n