The Bank of Canada continued to hold its key interest rate at five per cent yesterday and said it has begun to see the economic conditions necessary to lower interest rates.

Governor Tiff Macklem says economic data since January has improved the central bank’s confidence that inflation will continue to slow, even as economic growth picks up.

The governor says while the Bank of Canada is seeing the evidence it needs to begin lowering interest rates, it needs to see price pressures ease for longer to make sure the decline in inflation is sustained.

Larry Short of Short Financial told Tim Powers on VOCM, people have been feeling the pinch from rising interest rates.

According to numbers released by the Office of the Superintendent of Bankruptcy, consumer insolvencies increased by 25 per cent in February over the same period in 2023, “and business insolvencies went up by 122 per cent. So people are really, really hurting out there.”