Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent.The central bank says it expects the Canadian economy to contract in the first quarter of 2021.
Markets bet on Bank of Canada ‘micro rate cut’ amid tightening coronavirus restrictions The central bank said in October the country had been spared from a worst-case economic scenario, but it still didn’t see a recovery taking hold until at least 2022.Since then, case numbers have grown and severe restrictions have been put in place in parts of the country to curb the spread of COVID-19.In its statement accompanying the interest rate decision, the Bank of Canada said its trendsetting interest rate won’t move from near-zero until inflation is “sustainably” back at.