Economics
Bank of Canada Stands Pat on Stimulus Amid Job-Market Slack
- Macklem takes more dovish tone than some analysts expected
- Policy makers hold rates, leave bond purchases unchanged
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The Bank of Canada left interest rates and its asset purchase program unchanged, in a decision that may dampen speculation of an imminent paring back of its stimulus campaign.
In a statement Wednesday from Ottawa, policy makers led by Governor Tiff Macklem held the bank’s overnight rate at 0.25% and reiterated a pledge to not raise borrowing costs before damage from the pandemic is fully repaired -- something the central bank doesn’t anticipate will happen until 2023. It emphasized the jobs market is “long way from recovery.”