Bank of Canada Rate Status Quo
CBJ — The Bank of Canada has no intention of raising its overnight trendsetting interest rate due to the vast uncertainties surrounding the COVID-19 pandemic.
The bank’s new governor Tiff Macklem says the bank is focused on delivering low rates for the foreseeable future as a means of promoting economic recovery.
Many Canadians would be in a far worse position than they already are if interest rates were to go up, even by half a percentage point.
The Bank of Canada rate is currently at 0.25%, which is essentially as low as it can be.
“Some day we will get through this, the economy will be recovered and interest rates will start to move back to more normal levels,” Macklem says. “But we’re in a deep hole, and it’s going to be a long way out of this hole.”