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5 Year Variable 1.50%

The Bank of Canada to Keep its Key Interest Rate Target on Hold

The Bank of Canada to Keep its Key Interest Rate Target on Hold

Date Posted: December 9, 2020

The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent. They will be holding the policy interest rate at the effective lower bound until economic slack is absorber so that the 2 per cent inflation target is sustainably achieved. The Bank of Canada says they do not expect inflation to get back on target until some time in 2023. They also say that it will maintain its quantitative easing program by continuing to buy around $4 billion in bonds per week in order to try and further reduce interest rates. After a year impacted by Covid-19, this will be the last Bank of Canada announcement of 2020.

To read the full announcement from The Bank of Canada, click here.

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