Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Bank of Canada preview: interest rate expected to remain at 5%

The Bank of Canada should keep its overnight rate at 5%, leaving borrowing costs at a 22-year high when it makes its latest monetary policy announcement.

Video poster image

The BoC has always said it would not hesitate to move rates higher. However, there is very little risk at the moment with headline CPI at 3.1% in October. Inflation is still expected to return to the 2% target in 2025, however, with the central bank saying it expects inflation to be higher in the short-term and projects inflation will average about 3.5% through the middle of 2024.

(AI Video Transcript)

The Bank of Canada

The Bank of Canada, which is the country's central bank, has recently decided to keep its overnight rate unchanged at 5%. This means that borrowing costs will remain at a 22-year high. The bank's main concern is to control inflation, which is when prices for goods and services increase. However, at the moment, there is little risk of inflation. In fact, economists predict that inflation will eventually return to a target rate of 2% by 2025. In the meantime, inflation is expected to be a bit higher, at around 3.5% until mid-2024.

USD/CAD

Investors are keeping a close eye on the exchange rate between the USD and the CAD. They want to see how the Bank of Canada's decision on interest rates will affect the value of the Canadian dollar. Despite the fact that the US dollar has been recovering, today the Canadian dollar has actually decreased in value by 0.18% against the US dollar, breaking its winning streak of the past two days. This interest rate decision by the Bank of Canada has the potential to create some instability in the market and give us a clearer sense of whether the Canadian dollar will go up or down in relation to the US dollar.

Overall, what this means for someone who may not have a lot of trading experience is that the Bank of Canada has chosen to maintain its current interest rates. This decision will impact borrowing costs and could affect the value of the Canadian dollar. It is important to keep an eye on the US dollar-Canadian dollar exchange rate in order to gain a better understanding of how the Canadian dollar may perform in the near future.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.