Interest Rate Remains 0.25%
CBJ — The Bank of Canada is keeping its benchmark overnight trendsetting interest rate of 0.25%.
The decision to keep the status quo is the first rate decision under Tiff Macklem, who recently took the helm as the Bank’s governor following the conclusion of the seven-year term by Stephen Poloz.
Following a media conference by Macklem it appears obvious The Bank has no intention on moving the rate any time soon with such uncertainty not only in the Canadian economy but also on a global scale.
“It’s going to be a long climb out,” says Macklem. “We are being unusually clear that interest rates are going to be unusually low for a long time.”
The central bank is now expecting Canada’s economy to shrink by 7.8% this year with a rebound of at least 5% next year and 3.7% in 2022.