Economics
Bank of Canada Stands Pat on Rates Amid Surge in Covid Cases
- Officials see slack in the economy persisting until 2023
- They also highlight uncertainties in pace of vaccine rollout
Tiff Macklem speaks during a Bank of Canada news conference on Oct. 28.
Photographer: Sean Kilpatrick/Canadian Press/Bloomberg
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The Bank of Canada stood pat on interest rates and reiterated its commitment to keep them at historic lows to support an economy buffeted by a second wave of Covid-19 cases.
In a decision Wednesday from Ottawa, policy makers led by Governor Tiff Macklem held the bank’s overnight rate at 0.25% and reiterated a pledge to keep it there, probably until 2023. They said the bank would continue to buy Canadian government bonds worth at least C$4 billion ($3.1 billion) a week.