Bank of Canada expected to keep rates on hold whil

Aihucha News, September 6: Economists and investors expect Bank of Canada Governor Tiff Macklem and central bank officials to keep the benchmark overnight interest rate unchanged at 5%. If the rate hike is suspended, it will mark only the third time in 13 meetings that the central bank has not raised interest rates. But most analysts believe the bank has finished raising rates. The challenge for Macklem is that further rate hikes are possible even in a rapidly deteriorating economy, which would pose a threat to credibility. Policymakers may say they are making progress on inflation, but won't declare victory. Since resuming rate hikes in June and July, there is ample evidence that the Bank of Canada has done enough to ease excess demand and restore price stability.