Instant View: Bank of Canada says can't cut rates until it sees more inflation progress

TORONTO (Reuters) - The Bank of Canada (BoC) kept its key rate unchanged at a near 23-year high of 5% on Wednesday and ruled out a cut until it sees more signs that a recent drop in inflation will be sustained.

In its quarterly Monetary Policy Report, the bank also hiked its growth forecast for 2024 on the back of strong immigration flows and increased household spending.

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KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY

"This is far more cautious than markets had anticipated. The bank is saying that they are confident that inflation is moving in the right direction but still not confident enough to begin cutting rates."

"Essentially what they're saying is that the economy could run hotter than they had previously anticipated and that is not sufficient grounds for beginning to ease immediately."

(Reporting by Rod Nickel; Editing by Denny Thomas)