As expected, the Bank of Canada left its overnight rate at 0.25%, the level its been at since the onset of the pandemic.
The BOC also announced the end of its bond buying program that has been helping to keep rates low. The Bank has said it won’t increase its overnight rate until the recovery is fully complete, expected to be sometime in 2022.
According to the Bank, “The global economic recovery from the COVID-19 pandemic is progressing. Vaccines are proving highly effective against the virus, although their availability and distribution globally remain uneven and COVID variants pose risks to health and economic activity. In the face of strong global demand for goods, pandemic-related disruptions to production and transportation are constraining growth. Inflation rates have increased in many countries, boosted by these supply bottlenecks and by higher energy prices. While bond yields have risen in recent weeks, financial conditions remain accommodative and continue to support economic activity.”
The next scheduled overnight rate announcement will be on December 8, 2021.
Read the full report by Bank of Canada here. #BankofCanada
BACK TO BLOG FEED