Canada's central bank has decided to stop raising interest rates to keep inflation in check.
Attention is focused on whether the effect of the eight consecutive interest rate hikes since last year will bring about an end to inflation.
The Bank of Canada, the central bank of Canada, decided on the 8th to maintain the policy rate at the current 4.5%.
The Bank of Canada raised interest rates eight times in a row from March last year to January this year to curb inflation.
Regarding the reason for stopping the interest rate hike, the latest economic indicators, such as the rate of increase in the consumer price index in January compared to the same month of the previous year was 5.9%, which is declining from the 8% level in June last year. are in line with the prospect that inflation will converge.
On the other hand, in the United States, there are concerns that it will take time for inflation to converge, as Chairman Powell of the Fed = Federal Reserve Board, who is the central bank on the 7th, said in congressional testimony that he was "prepared to accelerate the pace of interest rate hikes." It is rising.
In the financial markets, attention is focused on whether inflation will come to an end in Canada, which has stopped raising interest rates, while major central banks in Europe and the United States continue to raise interest rates.