Thursday Nov 16th, 2023


The Bank of Canada’s interest rates are not likely to return to the low levels they were at prior to the COVID-19 pandemic, according to the central bank’s senior deputy governor Carolyn Rogers.

The central bank’s hikes over the past 18 months, which saw the benchmark policy rate spike from 0.25% to 5%, represented its most aggressive rate-hike campaign in decades.

Rogers said that looming significant changes to global demographics – particularly boomers and their saving/spending habits – could lead to a higher-than-usual endpoint for the BoC rates, even if the central bank begins its cuts over the next two years.

Higher levels of government debt and geopolitical volatility such as the ongoing wars in Ukraine and the Gaza Strip could also place potential upward pressures on global interest rates.