Bank of Canada keeps interest rates unchanged
Bank of Canada keeps interest rates unchanged
The Bank of Canada kept interest rates unchanged as it kept the key interest rate at a record low of 0.25% as expected and the Bank said that overall inflation will likely remain at 3% during the summer, well above the bank’s target of 2%.
The Bank of Canada said that The economy will rebound strongly with the revival of vaccinations against the coronavirus, as the central bank plans to maintain its current policy of quantitative easing and aims to purchase C$3 billion in government bonds per week.
The Central Bank of Canada confirmed that interest rates will remain unchanged until the second half of 2022. At least, pointing to the continued existence of a large surplus in the economy. He also explained that while growth in the second quarter will be affected by the measures taken to combat the third wave of the Corona virus, the long-term outlook is good.