The Bank of Canada increased the overnight rate today to 5% despite the decline in the inflation rate to 3.4% as of May 2023 because of lower energy prices. Food and shelter inflation remains high.

In a recent speech, Deputy Governor Paul Beaudry stated: "We know this tightening cycle has not been easy for many Canadians. But the alternative—not controlling inflation—would be far worse, particularly for people living on low or fixed incomes." He pointed out that continued strong demand...

The Bank of Canada increased the overnight rate today to 4.75% citing persistent inflation at 4.4%, a hot job market and stronger than expected economy. 

By raising the overnight rate, the expected effect in the coming months is: "In our baseline forecast, the labour market will soften as the economy slows. Wage growth will ease. Businesses will revert to more normal price-setting behaviour. And near-term inflation expectations will come into line with the inflation target," said...