For the second month in a row, the Bank of Canada kept the central bank in its meeting moments before the interest rate unchanged at 4.50%, as expected.

The bank’s interest report stated that economic growth in Canada was stronger than expected in the first quarter with the recovery of exports and consumption. The bank expects the Canadian economy to grow by 1.4% this year and 1.3% next year, and to rise to 2.5% in 2025.

The consumer price inflation index fell to 5.2% in February, and the bank’s preferred measures for core inflation were just under 5%.

The bank expects the index to drop to 3% in the middle of this year, and to fall to the bank’s target of 2% by the end of 2024, as the latest data reinforces the bank’s confidence.

That inflation will continue to decline. The Board of Directors will continue to evaluate economic developments and the impact of recent interest rate increases and is ready to raise interest rates again if necessary to bring inflation back to the 2% target.