This article was last updated on April 16, 2022
Canada: 
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Bank of Canada Governor, Stephen Poloz, has announced to keep the country’s interest-rate unchanged for the fourth consecutive year today, while claiming that there are equal chances for the next move to be an increment or decrement. Policy makers have once again shown retrain to keep the benchmark rate on overnight loans between commercial banks steady at 1 percent.
The decision announced by Ottawa today was anticipated and predicted by almost all 18 economists in a recent survey. In the announcement, 58-year-old Governor Poloz mentioned that “the Bank remains neutral with respect to the next change to the policy rate: its timing and direction will depend on how new information influences the outlook and assessment of risks.” The decision has extended Canada’s longest rate pause since the 1950s and economists predict Poloz won’t tighten policy before next year as the recovery builds. In addition to that, the one-page statement issued by the bank included multiple references to the economy advancing as anticipated and the recent quickening of inflation past the 2 percent target was caused by temporary factors.
In a research note issued by chief economist at CIBC World Markets in Toronto, Avery Shenfeld, it was mentioned that the bank “made it abundantly clear that it saw no prospect for a change any time soon.” Furthermore, it was highlighted that “the key message is that the next move in rates could still be up or down, largely because it is seen as distant enough to be uncertain in either timing or direction.”
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