On March 6, 2024, the Bank of Canada announced that it would hold its policy interest rate at 5 percent, maintaining a cautious stance as inflation continued to show uneven progress.

March 7, 2024- Inflation readings from January and February suggested improvement, yet persistent pressure in certain categories prevented the Bank from considering immediate rate cuts.

Governor Tiff Macklem noted that core inflation remained above the two percent target. Shelter costs, especially mortgage interest payments and rent, remained a driving force behind continued inflation. Economists pointed to Canada’s tight housing market as a core structural issue contributing to inflation.

Labour market data during early March showed signs of cooling, with fewer job vacancies and slower hiring activity. These factors increased speculation that rate cuts could arrive later in the year. However, Bank officials stressed the need for more consistent inflation data before easing monetary policy.

Households with upcoming mortgage renewals faced continued financial strain. Many Canadians hoped for rate relief, while some analysts warned that cutting too early could lead to renewed inflation, especially in housing.

The global context also shaped the Bank’s decisions. Shipping disruptions, energy market volatility, and geopolitical tensions contributed to economic uncertainty. The Bank of Canada signaled that it would continue to prioritize stability and data driven decisions.

March became a critical moment in shaping expectations for the remainder of 2024. Canadians watched closely for future inflation reports that would determine when borrowing costs might finally begin to fall.