Is Canada’s Consumer Price Index (CPI) coming under control?
On September 6, 2023 The Bank of Canada (BOC) left interest rates unchanged from the previous rate announcement. This may signal that we have seen an end to interest rate increases!
The BOC has a target CPI of 2% that they would like to see in Canada. In June of last year the CPI was 8.1% (due to recovery from Covid and the Russian thugs in Ukraine). With the increases in the BOC rate and stabilization of the world situation the CPI is at 2.8% as of June 2023.
The BOC recognizes that it takes 12 to 24 months for the full effect of interest rate changes to be felt. This is why we may see a continued hold in the change of the policy interest rate of the BOC.
Next interest rate announcement will be October 25, 2023
I want to wish you all the best for the autumn season.