Bank of Canada Communication

The Bank of Canada maintained its key interest rate at 4.5%. In its announcement, the bank stated that 
demand still exceeds supply and economic growth in the first quarter was stronger than expected. The 
bank however expects economic growth to be weak for the rest of this year before beginning to pick up 
gradually in 2024 and through 2025. 

Inflation has declined but is still considered too high at just over 5%. The bank projects inflation to come 
down further to around 3% in the middle of this year due to lower energy prices, improved supply chains 
and restrictive monetary policy and projects that inflation will reach the 2% target by the end of 2024.
The bank indicated that the effects of past policy rate increases are still working their way through the 
economy and that it will continue to monitor economic developments to assess whether monetary 
policy is sufficiently restrictive to return inflation to target indicating that it is prepared to raise the policy 
rate further if deemed necessary. 

The next Bank of Canada announcement is scheduled for June 7th, 2023. I’ll make sure to keep you 
informed. As always, if you have any questions, please reach out to me.

Summarized

Kelly MioBertolo,
Mortgage Agent
Mortgage Alliance