Will the Bank of Canada lower rates on Dec 6th?

The Bank of Canada is scheduled to announce its interest rate decision on Wednesday, December 6, 2023, at 10 am (ET). The Bank of Canada's key interest rate has been at 5% since July 2023. The Bank of Canada has been raising interest rates since 2022, with seven hikes in 2022 alone. The Bank of Canada's interest rate decisions are based on various factors, including inflation, economic growth, and global economic conditions.

According to a Reuters poll published in October 2023, the Bank of Canada is expected to keep its interest rates unchanged and hold them at the current 22-year highs for at least six months until mid-2024. Money markets now price in a 14% chance of a rate hike at the next Bank of Canada decision on December 6, 2023, according to Reuters.

The Bank of Canada's decision to raise or maintain its interest rates will significantly impact the Canadian economy. A rate hike could lead to higher borrowing costs for consumers and businesses, which could slow down economic growth. On the other hand, a rate cut could stimulate economic growth by making borrowing cheaper.

In summary, the Bank of Canada is anticipated to keep its interest rates unchanged, but there is still a chance of a rate hike. The Bank of Canada's decision will have a significant impact on the Canadian economy, and it will be interesting to see how the markets react to the announcement.