Will there be a rate hike in 2023?

Money markets still see a chance for another rate hike this year. A median of 25 participants now also predict a 0.7 per cent gross domestic product growth at the end of 2023, instead of a 0.1 per cent contraction forecast in the last survey.

Will bank of Canada raise interest rate in 2023?

The OECD expects the Bank of Canada to raise its policy interest rate to 4.5 per cent in 2023. Photo by Sean Kilpatrick / THE CANADIAN PRESS

What is the bank of Canada interest rate hike?

The Bank of Canada announced a 25 basis point increase, its 8th consecutive rate hike, pushing the key interest rate from 4.25% to 4.50% on Wednesday, January 25th, 2023. This increase was widely predicted by economists ahead of the official announcement. At 4.50%, this is the highest the interest rate has been since 2008.

What will happen to Canada's economy in 2023?

Faced with higher borrowing costs, Canadians and businesses are expected to continue to pull back on spending in 2023, thereby slowing the economy and inflation. Price growth has slowed in recent months, however, inflation is still well above the Bank of Canada’s two per cent target. In December, the annual inflation rate was 6.3 per cent.