Bank of Canada signals rates might have peaked. What comes next?

The Bank of Canada held its benchmark interest rate steady at 5.0 per cent on Wednesday and hinted that its tightening cycle might have peaked, but policymakers stayed mum on a possible timeline for rate cuts. The decision, which marks the fourth consecutive hold from the central bank, was widely expected by economists. Bank of Canada governor Tiff Macklem told reporters Wednesday that conversations at the central bank have shifted from debating whether interest rates are high enough to how long the central bank needs to keep rates at current levels. The Bank of Canada has been raising the cost of borrowing since March 2022 in an effort to tamp down inflation, which has declined sharply from highs of 8.1 per cent. Annual inflation ticked up to 3.4 per cent in December from 3.1 per cent the month previous. Nivrita Ganguly has more. For more info, please go to https://globalnews.ca/news/10246847/bank-of-canada-rate-decision-jan-2024/ Subscribe to Global News Channel HERE: http://bit.ly/20fcXDc Like Global News on Facebook HERE: http://bit.ly/255GMJQ Follow Global News on Twitter HERE: http://bit.ly/1Toz8mt Follow Global News on Instagram HERE: https://bit.ly/2QZaZIB #GlobalNews #interestrates #bankofcanada