As expected, the Bank of Canada on Wednesday left its key interest rate unchanged at a record low 0.25% and said that the economy would rebound strongly as COVID 19 vaccinations picked up.
The central bank also said it would maintain its current policy of quantitative easing. It is aiming to buy C $3 billion of state bonds a week as part of an effort to help recovery from the effects of the Pandemic.
In a statement of rate decision, the bank reiterated its guidance that interest rates would remain unchanged until at least the second half of 2022, noting that there remained considerable excess in the economy.
With upcoming vaccinations proceeding at a faster pace and consumer deregulation on an easing path over the summer, the Canadian economy is expected to rebound strongly, led by provincial spending, it said.
The overall inflation would likely stay at 3% during the summer before subsiding later in the year, it added. Which is the Best way to apply for a title?