The Bank of Canada announced Wednesday that it is holding its key interest rate at 5% — as widely expected — for the third consecutive time amid signs that past interest rate increases are dampening economic activity. So, does this mean that the central bank is finally done with rate hikes? And when might interest rates start to fall?   

Scotiabank’s Chief Economist Jean-François Perrault is back to explain why the central bank’s decision was a no-brainer, where rates could go in the new year and why inflation isn’t disappearing anytime soon.  

Need a refresher on interest rate moves and the impact on inflation? Here’s a handy chart with the Bank of Canada’s key interest rate decisions and monthly inflation rates over the past two years. 

Key moments this episode: 

00:53 — Is there anything new that we learned from the Bank of Canada’s statement Wednesday? 

1:36 — Was this latest decision to hold a no-brainer?   

3:01 — Will we still see impacts from previous rate cuts?  

3:36 — Have rates finally peaked? 

4:24 — Where is inflation at and how much progress have we made in tamping it down? 

5:37 — What are the major risks on the horizon on the inflation front? 

7:10 — What signs are we looking for in the next month or two that might inform where rates will go? 

7:48 — How is the Canadian economy doing and what are the prospects of a recession? 

9:17 — Should Canadians expect higher than normal rates for longer?  

10:03 — When will we finally see rate cuts? 

11:42 — Breaking down the impact of a January 2023 rate hike pause on the housing market 

12:22 — What does the decision Wednesday tell us about what other major central banks might do?  

13:22 — Three key takeaways from the latest announcement as we head into the new year?