Bank of Canada Interest Rate Announcement – September 9, 2020
September 9, 2020
No Change to Overnight Rate
The Bank of Canada has announced it will hold its key interest rate at 0.25 percent. That rate has held since March when the COVID-19 pandemic sparked an economic crisis.
“The Bank continues to expect this strong reopening phase to be followed by a protracted and uneven recuperation phase, which will be heavily reliant on policy support,” the announcement reads. “The pace of the recovery remains highly dependent on the path of the COVID-19 pandemic and the evolution of social distancing measures required to contain its spread.”
In today’s announcement, the Bank has also committed to continuing its quantitative easing program, buying Government of Canada bonds at a rate of $5 billion per week.
“As the economy moves from reopening to recuperation, it will continue to require extraordinary monetary policy support.”