No rate cut just yet

The Bank of Canada held interest rates steady at 5% for the fourth time in a row on Wednesday, signaling that cuts may be coming, as analysts expect, in the spring. The bank is now focused on “how long it needs to stay at the current level,” Bank of Canada Governor Tiff Macklem said.

In the United States, investors are waiting to see what the Fed does next week when policymakers meet. Some investors have warned that a hot stock market could cause the Federal Reserve to keep rates higher for longer than expected.

Both Joe Biden and Justin Trudeau will be hoping that inflation continues to slow, stabilizing consumer prices and allowing central bankers in both countries to stop restricting the supply of money before voters go to the polls again.