Bank of Canada Interest Rate Announcement – June 9, 2021

Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent until inflation objective is sustainably achieved.

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. This means no change to the overnight lending rate and no changes to the prime rates for variable rate mortgages.

With COVID-19 cases falling in many countries and vaccine coverage rising, global economic activity is picking up. Growth remains uneven across regions, however. The US is experiencing a strong consumer-driven recovery and a rebound is beginning to take shape in Europe, while a resurgence of the virus is hampering the recovery in some emerging market economies.

With vaccinations proceeding at a faster pace, and provincial containment restrictions on an easing path over the summer, the Canadian economy is expected to rebound strongly, led by consumer spending. Housing market activity is expected to moderate but remain elevated.

The next scheduled date for interest rate announcement is July 14, 2021. Read the full report by Bank of Canada here.