Bank of Canada holds policy rate steady

ISTANBUL

The Bank of Canada maintained its policy rate in its latest decision, in line with expectations, but vowed to continue quantitative tightening.

The central bank announced Wednesday that it held its targets for the overnight and deposit rates at 4.5% each, and the bank rate at 4.75%.

It said in a statement that global economic developments had evolved "broadly" in line with its outlook since January. "Global growth continues to slow, and inflation, while still too high, is coming down due primarily to lower energy prices."

Though Canada's economic growth came in flat in the fourth quarter of 2022, lower than the bank's projection, inflation eased to 5.9% in January due to lower price increases in energy, durable goods, and some services, it added.

The Bank of Canada had raised interest rates by 100 basis points last July, its steepest hike since August 1998, to fight high inflation.

Its last rate raise was of 25 basis points in January.