Bank of Canada Governor Tiff Macklem and Senior Deputy Governor of the Bank of Canada Carolyn Wilkins are seen during a news conference in Ottawa, Wednesday, July 15, 2020. The Bank of Canada will deliver a rate announcement today with observers watching if news about vaccines gives a shot in the arm to the bank’s outlook on the economy. THE CANADIAN PRESS/Adrian Wyld

Bank of Canada Governor Tiff Macklem and Senior Deputy Governor of the Bank of Canada Carolyn Wilkins are seen during a news conference in Ottawa, Wednesday, July 15, 2020. The Bank of Canada will deliver a rate announcement today with observers watching if news about vaccines gives a shot in the arm to the bank’s outlook on the economy. THE CANADIAN PRESS/Adrian Wyld

Bank of Canada keeps key interest rate target on hold at 0.25%

The announcement marks the interest last rate decision the central bank will make this year

The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent.

The central bank says it will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the two per cent inflation target is sustainably achieved.

In its statement today, the Bank of Canada says it doesn’t expect inflation to get back on target until some time in 2023.

The central bank also says that it will maintain its quantitative easing program by continuing to buy about $4 billion in bonds per week to try and further reduce interest rates.

The announcement marks the last interest rate decision the central bank will make this year, after an extraordinary 2020 that saw it slash rates in response to the economic crisis caused by COVID-19.

Today also marks a change in the upper echelons of the bank’s leadership, as senior deputy governor Carolyn Wilkins departs after a nearly 20-year career at the Bank of Canada.

The central bank’s board of directors has launched a search process to find her successor as the bank’s second-in-command.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Black Press Media files)
Transport Canada not budging on enclosed deck rules, despite calls from BC Ferries union

There have been at least 23 cases of the U.K. variant detected in Canada, four of which are in B.C.

Members of the BC RCMP Explosive Disposal Unit (EDU) is on route to Drummond Park opposite of Fulford Habour on Saltspring Island after the discovery of a suspicious cylindrical-shaped device. (Google/Screencap)
Bomb disposal unit en route to Salt Spring Island after discovery of suspicious device in park

Police say a resident discovered the device Wednesday morning in Drummond Park opposite BC Ferries terminal

Victoria police arrested a man after at least 14 downtown locations were damaged Jan. 20. (Courtesy of Victoria Police Department)
Victoria glass smashing suspect believed to be water taxi thief

Man arrested for damaging at least 14 downtown locations

Saanich has awarded the tender for a youth bike skills park planned for the lot next to the George Tripp BC Hydro Substation off Lochside Drive to Bike Track Ltd. for $242,000. (Black Press Media file photo)
Saanich selects company to build youth bike skills track at Tripp Station Park

More than $240,000 allotted for Bike Track Ltd. to design bike park

West Shore RCMP seized a stolen fish finder and drugs after searching a Colwood home Jan. 9. (Black Press Media file photo)
Search of Colwood home reveals stolen fish finder, drug trafficking evidence

West Shore RCMP suspect a 46-year-old woman is responsible

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Jan. 19

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Seven streets in downtown Duncan, including Station Street, will soon have new native names added to their signage. (Submitted graphic)
New Duncan street signs will be in English and Hul’q’umi’num

Seven streets to get additional names in First Nations language

Southern resident killer whales in B.C. waters. Research shows the population’s females are more negatively influenced by vessel traffic than males. (Photo supplied by Ocean Wise Conservation Association)
Female orcas less likely to feed in presence of vessel traffic: study

Research the southern resident population raises concerns over reproduction capacity

The Elk Valley Hospital is adapting to meet the needs of patients in the Elk Valley.
One in five tests in Fernie area coming back positive: doctor

Dr Ron Clark of Elk Valley Hospital said one in five tests was returning positive for COVID-19

Throughout December, RCMP conducted CounterAttack road checks as police worked to keep roads free of impaired drivers. (BLACK PRESS file photo)
From the “You can’t make this stuff up” file – stories from the BC CounterAttack campaign

Amusing, yes, but a reminder impaired driving affects ability to drive and to make good decisions

(Thesendboys/Instagram)
Video of man doing backflip off Vancouver bridge draws police condemnation

Group says in Instagram story that they ‘don’t do it for the clout’

The RCMP are reminding drivers to find alternative ways home if they have consumed anything that impairs their ability to drive. (Black Press file photo)
Impaired Island driver flees road check twice on the same night

The officer issued the driver numerous violation tickets, and a four-month driving suspension

Most Read