Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on December 15, 2020. Canada’s central bank will update its economic forecast for the country that will offer a window when it expects a recovery from the COVID-19 pandemic to take hold. THE CANADIAN PRESS/Sean Kilpatrick

Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on December 15, 2020. Canada’s central bank will update its economic forecast for the country that will offer a window when it expects a recovery from the COVID-19 pandemic to take hold. THE CANADIAN PRESS/Sean Kilpatrick

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

The central bank is citing the economic conditions and ongoing uncertainty

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

The central bank is citing the economic conditions and ongoing uncertainty from the pandemic as reasons for its decision.

It also says that the earlier-than-anticipated arrival of vaccines has reduced economic uncertainty from “extreme levels.”

Still, the bank says today it expects the Canadian economy to contract in the first quarter of 2021.

The bank forecasts real gross domestic product will decline by 2.9 per cent in the first quarter of the year compared to the same period in 2020, before improving thereafter if severe restrictions start easing in February.

The bank is forecasting growth of four per cent this year, then 4.8 per cent next year, and finally 2.5 per cent in 2023.

This report by The Canadian Press was first published Jan. 20, 2021.

The Canadian Press

economy

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

Just Posted

Boma Brown won the Emerging Leader Award for her work founding the Support Network for Indigenous Women and Women of Colour. (Courtesy of Boma Brown)
Victoria SNIWWOC founder up for national women’s award for volunteer efforts

Victoria’s Boma Brown is a semi-finalist in the running for the L’Oreal Paris Women of Worth award

(Black Press Media file photo)
Aggressive bus passenger arrested in Saanich for uttering threats

Suspect had outstanding warrant for assault at bus stop, two assaults on BC Transit buses

(Pixabay photo)
New program to provide recovery beds for at-risk Greater Victoria youth

It will aim to meet ‘health and social’ needs of wide range of youth

Pacific Coastal Airline flights 8P1543 on Feb. 22 and 8P1538 on Feb. 24 had cased of COVID-19 onboard, according to the BC Centre for Disease Control. (Pacific Coastal Airlines photo)
Two flights between Kelowna and Victoria report COVID-19 exposures

Pacific Coastal Airlines flights on Feb. 22 and Feb. 24 affected

Aerial view of the Capital Regional District residuals treatment facility at Hartland Landfill where residual solids are turned into Class A biosolids. (Photo courtesy CRD)
Plant closure sends more biosolids to Hartland Landfill

Saanich residents are concerned they were never consulted

A health-care worker looks at a dose of the COVID-19 vaccine at the Palais de Congress site as Quebec begins mass vaccinations based on age across the province, Monday, March 1, 2021 in Montreal.THE CANADIAN PRESS/Ryan Remiorz
Nearly 1 million COVID-19 vaccine doses arriving in Canada this week: Anand

Anita Anand says she’s received assurances from the vaccine manufacturer

(File photo)
RCMP arrest man after report of gun-toting, threat-maker near Parksville schools

43-year-old man taken into custody; students at nearby schools were asked to stay inside

The machines are akin to ATMs and allow drug users at risk of overdose to get hydromorphone pills dispensed to them after their palm has been scanned to identify its unique vein pattern. (CANADIAN PRESS)
Feds dole out $3.5M for ‘vending machines’ to dispense safer opioids in B.C.

Vancouver and Victoria both have a MySafe machine to help reduce overdoses

Kelowna’s lakefront visitor centre is one of 130 around the province. Tourism businesses have been hardest hit by COVID-19 restrictions on travel. (Destination B.C.)
Tourism, small business getting COVID-19 help, B.C. minister says

$300M grant program has delivered $50 million so far

The incident happened in downtown Castlegar. Photo: Betsy Kline
Castlegar teen recounts stabbing after stranger breaks into grandmother’s house

The unnamed teen survived a terrifying attack Feb. 21

(Black Press file photo)
Agassiz boy, 11, dies from ‘extensive injuries’: Homicide team

Agassiz RCMP were called out Friday to assist with a child in medical distress

Dr. Amit Desai of St. Francis Hospital receives a COVID-19 vaccine on Dec. 17. (Photo courtesy of CHI Franciscan)
B.C. has now vaccinated more people from COVID-19 than total confirmed cases

B.C. has reached a milestone, vaccinating roughly 1.6% of its population from the coronavirus

Nanaimo RCMP are looking for a suspect who smashed the window of an adult toy store and made off with more than $1,200 in merchandise. (File photo)
Vancouver Island sex shop out $1,200 in merchandise after suspect steals ‘colossal’ product

Suspect smashed window of Nanaimo store, cutting himself in the process

Riverside Calvary Church in Walnut Grove. (Langley Advance Times file)
B.C. is ‘stereotyping’ churches as riskier for COVID than other spaces, lawyer argues

Judge said that freedom of expression, religion are not at issue in the case

Most Read