The Bank of Canada held its key overnight interest rate at 5% on Wednesday, marking the sixth consecutive time that it has done so.

Inflation, which stood at 2.8% in February, is still too high for the central bank’s liking, But BoC Governor Tiff Macklem said a June rate cut is “within the realm of possibilities.”

“The further decline we’ve seen in core inflation is very recent,” Macklem told reporters after the interest-rate-hold announcement. “We need to be assured this is not just a temporary dip.”

The hold was widely anticipated. The BoC has sought to move inflation closer to the 2% mark before introducing rate cuts.

But economists have argued that core inflation, minus shelter costs, is already under 2%. Economists and commercial real estate leaders contend that shelter costs, particularly mortgage payments with high interest rates, are exacerbating overall inflation at a time when the BoC wants to reduce it.

The six consecutive interest-rate holds were preceded by 10 straight hikes since March 2022.

“As we consider how much longer to hold the policy rate at the current level, we’re looking for evidence that the recent further easing in underlying inflation will be sustained,” said Macklem.

Pictured: Bank of Canada Governor Tiff Macklem