Bank of Canada; unlikely to further increase interest rates and may instead opt for a rate cut by mid-2024.

The Bank of Canada (BoC) is scheduled to release its interest rate update on Wednesday, October 25, at 10 am ET. This event will be the seventh interest rate announcement of the year, with one final announcement slated for December 6.

During 2022, the BoC raised interest rates on seven occasions. In January 2023, the trend continued with another rate hike, pushing the key rate to 4.5%.

The Bank maintained its key rate at 4.5%, aligning with expert forecasts, until June 7, when it was increased to 4.75%. On July 12, the BoC raised the key rate to 5% as a measure to address inflation concerns, and on September 12, it announced its decision to maintain this rate.

Statistics Canada reported that Canada’s inflation rate dipped to 3.6% in July, then surged to 4% in August, before retracting by 0.2% in September. Consumer spending has remained robust throughout this year compared to the previous year, 2022.