Bank of Canada holds interest rate as economy weakens, inflation cools

The Bank of Canada left its benchmark interest rate unchanged at 5.0 per cent on Wednesday, amid signs of cooling in the economy and easing in inflation. “We don’t want to cool the economy more than necessary, but we don’t want Canadians to have to continue to live with an elevated inflation, either. And we cannot let high inflation become entrenched in the economy,” Bank of Canada governor Tiff Macklem said.

• Markets rise to start the week as investors eye rate decision, earnings and data
• Pace of government spending ‘not helpful’ in efforts to tame inflation: Macklem