The Bank of Canada decided to keep its policy rate at 5% and continue with its plan to manage the amount of money in the economy. Around the world, economies are slowing down, and prices aren’t rising as quickly. Even though the United States has been doing well, experts think it will slow down in 2024 because people are spending less and businesses are investing less. In places like Europe and China, things are also a bit tough, making it hard for their economies to grow. However, the cost of oil has gone down, which can help people and businesses manage their money better.
In Canada, the economy hasn’t been growing much since the middle of 2023. People are spending less because things are more expensive and interest rates are higher. Businesses are also investing less. While there are jobs available, not as many as before, even though wages are still going up. But things are expected to improve around the middle of 2024. People will probably spend more, and businesses might start investing more too. The government will also spend money to help the economy. The Bank of Canada is watching closely to make sure prices don’t go up too quickly, and they want to keep the economy stable for Canadians.