Posted on November 30, 2023

Bank of Canada decision preview: Are rate hikes now a thing of the past?

The Bank of Canada’s path on interest rates has grabbed headlines and dominated the news cycle throughout 2023 – but its final rate decision of the year isn’t expected to hold many surprises.

The central bank has left its policy rate, which leads variable mortgage rates in Canada, unchanged in its last two announcements, with Wednesday’s (December 6) scheduled decision expected to see no further move.

Markets appear virtually certain that the Bank will not hike rates next week amid clear signs that inflation pressures are easing as the economy continues to flatline.

Sherry Cooper (pictured top), chief economist at Dominion Lending Centres (DLC), told Canadian Mortgage Professional that Wednesday’s announcement could even see the Bank deploy more dovish language than usual, depending on third-quarter GDP figures which at time of writing had not been released.

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