Ahead of The Chamber hosting a high-profile visit from the Bank of Canada's Deputy Governor on June 8, there are signs that high interest rates have done their job.
This morning, the Bank of Canada announced it was holding its overnight rate at 4.5%. It's the second month in a row the rate has stayed the same after rising eight times since March 2022. The move suggests the bank is seeing the impact of higher interest rates reflected in cooling inflation. The bank is now forecasting inflation to drop to 3% by mid-year and slowly fall to the target rate of 2% by the end of next year.
"Inflation in many countries is easing in the face of lower energy prices, normalizing global supply chains and tighter monetary policy," stated the bank's news release. "At the same time, labour markets remain tight and measures of core inflation in many advanced economies suggest persistent price pressures, especially for services."
The bank will make its next rate announcement on June 7, followed by the release of its latest Economic Progress Report on June 8 in Victoria at an event hosted by The Chamber. See below for more information on this special Business Leaders Luncheon, sponsored by Odlum Brown.