1. Blog
  2. category

<<< back to article list

No sun from the Bank of Canada

Blog by Diane Cardoso | June 14th, 2023

Summer brings sunshine, but not from Bank of Canada!
June, 2023 - The Bank of Canada increased its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. 
The Governing Council decided to increase the policy interest rate, reflecting their view that monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target. Quantitative tightening is complementing the restrictive stance of monetary policy and normalizing the Bank’s balance sheet. Governing Council will continue to assess the dynamics of core inflation and the outlook for CPI inflation.  

Despite this continued Bank of Canada tightening policy, housing market activity has picked up, but the effects of record low inventory is translating into home price increases.  The next rate announcement from the Bank of Canada will be July 12, 2023.