The Bank of Canada announced it will be holding its key interest rate at 5% on Wednesday, making it the third consecutive pause.
A number of economists predicted that the central bank would keep its key interest rates at 5% from reviewing data on the weakening Canadian economy.
Canada’s Gross Domestic Product (GDP) has been stagnant and consumer spending has slowed.
Meanwhile, Canada’s unemployment rate has risen to 5.8% as the labour market continues to struggle.
Inflation is slowly beginning to decline, decelerating to a 3.1% yearly pace in October.
More and more Canadians are dealing with financial strains and many are having to resort to food banks just to keep their families fed.
This is becoming such a popular trend that food banks across the country are being brought to a breaking point, trying to keep their shelves stocked for those in need.
Families with newborns have also been faced with the dilemma of acquiring baby formula, which has been in short supply in recent months, and when it can be found, it’s often very costly compared to what it was this time last year.
Earlier this week, the Bank of Montreal released a study that revealed the standard of living for Canadians has been in decline since the post-war era, especially when compared to other countries, in particular, the U.S.
Canada’s business sector has also seen an average decline of 0.3% whereas the U.S. has seen a gain of 1.7% over the past five years.
“What is new is that productivity has actually reversed itself over the last five years, has declined, taking real GDP per capita with it on a downward trajectory.” said Douglas Porter, chief economist of BMO.