The Bank of Canada (BoC) decided to keep the key interest rate at 5%, with the bank rate at 5.25% and the deposit rate at 5%.
This is the third time interest rates have been kept on hold this year and the seventh rate announcement by the BoC.
In 2022, the BoC has raised interest rates seven times. Then, in January 2023, another increase was announced, bringing the interest rate to 4.5%.
The bank has kept interest rates at 4.5%, as expected by economists, until June 7, when it was raised to 4.75%. On July 12, the BoC raised interest rates to 5%, with the bank rate at 5.25%, and on September 12, it announced that the rate would be maintained.
In the past week, several analysts have come forward expressing expectations that interest rates will be kept on hold at today's announcement. Waima so there are a few who are of the view that there will be no rate increase again in 2023.
President of mortgage lender CanWise, James Laird believes the BoC is also hoping to finish raising rates and will only raise if they are surprised by the data coming in in the future.
With another interest rate hold now in place, Laird advises anyone with a variable interest rate loan or home equity line of credit (HELOC) to be "cautious" in their optimism that there won't be another rate hike this year.
Another interest rate announcement will follow on December 6 this year.
The US dollar jumped by 0.52% to trade at 1.38 against the Canadian currency after these results were released.
