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  • Keith&Jacqueline

January 2023 - Bank of Canada Rate Announcement

Updated: Jan 25, 2023

  • Today, the BoC made their first interest rate decision of 2023 by raising its policy rate to 4.50%, an increase of 0.25%.

  • This is the highest the BoC’s key rate has been since 2007.

  • Today’s decision marks the 8th consecutive time the BoC has raised the overnight lending rate, hiking the benchmark rate a full 4.25% since January 2022.

  • Headline inflation has cooled down from a high of 8.10% in mid 2022 down to 6.30% in December 2022.

  • Core inflation is around 5% and dropping, suggesting that core inflation has peaked, according to the BoC.

  • Canadians are still feeling the hardships of inflation in their essential household expenses with persistent price increases in food and shelter.

  • The BoC estimates that the economy grew by 3.6% in 2022 and predict GDP growth of 1% in 2023 and 2% in 2024.

  • In their press release of today, the BoC expects to hold the overnight lending rate at its current level while it assesses the impact of the increases to date.

  • The BoC is committed to get core inflation (CPI) to around 3% by the middle of 2023 and back to its 2% target by 2024.

  • Please reach out to us should you wish to talk about your current mortgage and/or your upcoming renewal, refinance or purchase.

  • The next scheduled date for announcing the overnight rate target is March 8, 2023.

Watch Video Warm regards, Keith Baker | | 604.723.5363 Jackie Zerbe | | 604.724.6982 (

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