The Bank of Canada's October Interest rate announcement leaves the Bank rate unchanged.
Bank of Canada Target Rate (and Bank Prime Rate) hikes have been paused since October 2018, but when rate changes resume, most analysts expect rates will drop, likely in response to a an economic slowdown.
Several key indicators point to a 2020 U.S. recession which would inevitably impact Canada.
Canada has had an inverted yield curve (when 1-year bonds yield higher interest rates than 10-year bonds) for 4 months now, and all past recessions have been preceded 6-18 months by an inverted yield curve.
Economists have varying opinions on where rates are headed, but the consensus is that now that the federal election is over rates will begin to drop in the short-term.
