Bank Rate to Stay at 0.25%
CBJ — In light of the global pandemic showing no signs of coming to a conclusion, the Bank of Canada says the economic recovery will require it’s benchmark interest rate of 0.25% to remain for at least the foreseeable future. In other words, there’s no need for speculative analysis from financial and economic experts… the rate will need to remain as is until some tangible form of economic recovery takes hold, and when that will be is anybody’s guess right now.
Since the early spring season, when the lockdowns took effect, Canada’s economy was almost immediately hit and it only got worse from there. The federal governments programs to help keep Canadians afloat has resulted in a deficit that could balloon to almost $400 billion by the end of the calendar year.
Making matters worse is that several major Canadian cities and provinces are reporting an increase in COVID-19 cases since the beginning of September. Another litmus test will be to see what happens now that students are back in schools.