Interest Rates: A Comprehensive Guide
Bank of Canada Announces 2023 Rate Schedule
The Bank of Canada has released its schedule for the release of its policy interest rate decisions and quarterly Monetary Policy Reports (MPRs) for 2023. According to the schedule, the bank will announce its interest rate decisions on the following dates:
- March 8
- April 12
- June 7
- July 12
- September 6
- October 25
- December 6
Recent Interest Rate Changes
The Bank of Canada has been actively increasing interest rates since March 2022 to combat rising inflation. The bank's most recent rate increase was on January 25, 2023, when it raised its target for the overnight rate to 5%, with the Bank Rate at 5¼% and the deposit rate at 5%.
Effectiveness of Rate Increases
The central bank's interest rate increases appear to be having a positive impact on inflation. The annual inflation rate in Canada has declined from a peak of 8.1% in June 2022 to 5.9% in December 2022. However, inflation remains above the bank's target of 2%. The bank has indicated that it will continue to increase interest rates until inflation returns to its target.
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