GBPCAD Bank of Canada leaves rates on hold, sees weak growth

Many indicators suggest that supply and demand in the economy are now nearing equilibrium. ”

Inflation is expected to return to the 2% target by the end of 2025, slightly behind July's mid-2025 forecast, "but energy prices and ongoing core inflation will The trajectory will rise even higher,” the central bank said.

Inflation is expected to fall to around 2.5% in the second half of 2024, and gross domestic product is expected to grow at an annual rate of 0.8% in both the third and fourth quarters of 2023. In July, the BoC expected annual growth to be 1.5% in the third quarter. .

The central bank lowered its growth forecast for 2023 to 1.2% from 1.8% in July, and the growth rate for 2024 to 0.9%, down from its previous forecast of 1.2%.