Statement by the Deputy Prime Minister on the Bank of Canada’s interest rate pause

September 6, 2023 - Ottawa, Ontario - Department of Finance Canada

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today issued the following statement regarding the Bank of Canada’s decision to maintain its overnight rate target:

“The Bank of Canada’s decision to maintain its overnight interest rate is welcome relief for Canadians.

“Inflation has fallen from a peak of 8.1 per cent in June of 2022 to 3.3 per cent in July of this year—and as Statistics Canada has noted, inflation in July was down to 2.4 per cent excluding mortgage interest costs. However, the elevated interest rates being used to bring down inflation are weighing heavily on Canadians.

“As Finance Minister, I fully respect the independence of the Bank of Canada as it delivers on its mandate to return inflation to target, which will support a return to the steady growth and stable prices which were hallmarks of the pre-COVID Canadian economy.

“As the Bank continues this work, my number one priority is to use all the tools at my disposal, and to work with partners at other levels of government across Canada, to ensure that interest rates can come down as soon as possible.”

Associated Links

• Bank of Canada maintains policy rate, continues quantitative tightening
• Statistics Canada: Consumer Price Index, July 2023