Bank of Canada Maintains Policy Rate at 5%, Signals End to Hikes

Governor Tiff Macklem indicates future discussions will focus on duration of current restrictive stance as economic growth stalls.

The Bank of Canada has held its policy rate steady at 5% for a fourth consecutive meeting, signaling it's done with hikes.
Governor Tiff Macklem stated that if the economy evolves in line with the bank's forecasts, future discussions will be about how long to maintain the current restrictive stance.
Data shows economic growth has stalled and will remain slow in the near term, which will help bring inflation back to the bank's 2% target next year.
The bank's dovish communications suggest it sees a rapidly slowing economy and believes its past rate increases are sufficient to quell inflation.
The Canadian dollar tumbled after the release, erasing earlier gains to trade at C$1.348 per US dollar.