Rate expectations: What’s the neutral rate, and why did the Bank of Canada raise it?

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Rate expectations: What’s the neutral rate, and why did the Bank of Canada raise it?
Overnight Interest RateBank Of Canada
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OTTAWA — The Bank of Canada's interest rate decision on Wednesday didn’t bring cuts, but it did bring new insight into where the central bank thinks interest...

OTTAWA — The Bank of Canada's interest rate decision on Wednesday didn’t bring cuts, but it did bring new insight into where the central bank thinks interest rates may be headed.

That metric is now estimated to be between 2.25 per cent and 3.25 per cent, up from two per cent to three per cent in the central bank’s last report. Bank of Canada holds benchmark interest rate steady at 5%, says no cuts without sustained easing of inflation

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