Governor Stephen Poloz seems to be pushing back the timeline for future hikes.
The Bank of Canada has kept interest rates at 1.75%, as the pace of future hikes seems set to slow as the economy weakens.
In a statement, the Bank of Canada said “Meanwhile, consumption spending and housing investment have been weaker than expected as housing markets adjust to municipal and provincial measures, changes to mortgage guidelines, and higher interest rates. Household spending will be dampened further by slow growth in oil-producing provinces. The Bank will continue to monitor these adjustments.”
The pause in interest rate hikes will be welcome news for the growing number of Canadians who are going bankrupt – as rate of insolvency are surging to some of the highest levels seen in years.
However, the relief for indebted Canadians from the pause in rate hikes will unfortunately be matched with the rising carbon tax, which will take more money out of the pockets of Canadians at the worst possible moment.