News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Bank of Canada Keeps Rate Unchanged, Says Increases Are Coming

01/26/2022 | 10:34am EDT

By Paul Vieira


OTTAWA--The Bank of Canada held its main interest rate steady on Wednesday at 0.25%, but said rate increases are on the horizon to deal with elevated inflation.

In its statement, the central bank said it was removing its exceptional forward guidance, which previously indicated rate rises would likely start in either the second or third quarter after excess capacity had diminished. "The governing council expects interest rates will need to increase, with the timing and pace of those increases guided by the bank's commitment to achieving the 2% inflation target."

The central bank said it now judges that spare capacity in the economy has largely disappeared. In an accompanying economic outlook, the central bank said officials are worried that higher-inflation expectations will become entrenched among households and businesses.


Write to Paul Vieira at paul.vieira@wsj.com


(END) Dow Jones Newswires

01-26-22 1034ET

Latest news "Economy & Forex"
01:42aWALL STREET STOCK EXCHANGE : China bill yields plunge as banks 'window dress' loan books
RE
01:39aIndian shares rise on auto boost, plunge in metals caps gains
RE
01:39aSIEMENS ENERGY CEO SAYS OF WIND TURBINE UNIT GAMESA : 'i don’t be…
RE
01:33aSiemens energy ceo says no reason why turbine makers like siemen…
RE
01:32aBeijing urges millions to keep working from home amid COVID outbreak menace
RE
01:24aDollar slips as China rekindles growth hopes
RE
01:21aSingapore April core inflation rises 3.3%, fastest in a decade
RE
01:20aIn Tokyo, Biden endorses Japan's plan to beef up its defences
RE
01:15aBeijing urges millions to keep working from home amid COVID outbreak menace
RE
01:12aThai Q1 jobless rate drops to 1.53% as COVID curbs ease
RE
Latest news "Economy & Forex"