Annual Report 2023

In 2023, the Bank of Canada made considerable progress in the fight against inflation and laid the groundwork for the return to price stability. But even as inflation came down considerably, increases in the cost of living continued to squeeze Canadians. For many, higher interest rates added to their burden. The challenge for the Bank was to set our policy interest rate high enough to wring high inflation out of the economy, but not so high that we stifled it. Global events ranging from foreign bank failures to the war in Israel and Gaza added uncertainty and brought new risks.