Bank of Canada maintains overnight rate. Some remarks about the US and Canada:

“US growth is expected to slow considerably in the coming months, with particular weakness in sectors that are important for Canadian exports.”

“In Canada, demand is still exceeding supply and the labour market remains tight. Wage growth is still elevated . Housing market activity remains subdued.”

Interesting remark about mortgages, in a way, higher mortgage payments will help with the monetary policy, they want us to be spending less. “As more households renew their mortgages at higher rates and restrictive monetary policy works its way through the economy more broadly, consumption is expected to moderate this year. ”

The CPI 2% target date now “by the end of 2024”.  BoC is “confident” that inflation will continue to decline in the next few months, but acknowledges getting to 2% “could prove to be more difficult because inflation expectations are coming down slowly, service price inflation and wage growth remain elevated, and corporate pricing behaviour has yet to normalize.”

Announcement ends with similar wording as last time, leaving room for multiple possibilities and covering their bases: “Prepared to raise the policy rate further if needed. The Bank remains resolute in its commitment to restoring price stability for Canadians.”

Next Bank of Canada announcement June 7 2023.  Next US Fed rate announcement May 3 2023.