Market participants expect Bank of Canada to hold rates at 4.50% until end of 2023, survey says

The Bank of Canada will hold interest rates at the 15-year high 4.50 per cent until the end of 2023, before starting to cut rates at the start of next year, a median of market participants said in the central bank’s survey released on Monday.

Market participants in the first survey released in February had said rates would fall to 4.0 per cent by the end of the year. The participants, surveyed from March 9 to 23, cited weaker housing market and tightening of financial conditions among top risks that could curtail Canadian growth.

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