5% Interest Rates Hold for the Fourth Time

Many have been hopeful for a drop in interest rates, but the Bank of Canada has announced that they will be keeping the interest rate at 5% for the fourth time in a row.

This decision comes from continued concern over inflation. While inflation has declined for the past year it seems to be preemptive to cut interest rates too soon before inflation drops to its intended target of 2%.

But do not fear! It shouldn't be too long before the interest rates drop. Economist Jeremy Kronick warns that if interest rates continue to face significant increases in mortgage costs people will not be able to spend elsewhere, creating an economic slowdown. With this warning in mind, there is a strong likelihood that interest rates will be lowering in the future, we just have to wait it out.