The key rate was maintained Wednesday at its floor value of 0.25% by the Bank of Canada.
This rate, which has been in effect since last March, when the planet was plunged into the worst health crisis in the last 100 years, will be in effect until the inflation target of 2% is reached, the central bank said. , by press release.
“The resumption of economic activity in Canada will have to continue to be supported by exceptional monetary policy measures,” it was specified. The Governing Council will keep the key rate at its floor value until excess capacity in the economy is absorbed, so that the inflation target of 2% is reached on a sustainable basis. ”
According to the Bank of Canada, this target will not be reached for a little over two years, in 2023.
“To strengthen this commitment and keep interest rates low across the yield curve, the Bank will continue its quantitative easing program until the recovery is well underway and adjust it as needed so that the inflation returns to target on a sustainable basis, it has been said. We remain committed to providing the level of monetary easing necessary to support the recovery and achieve the inflation target. ”
The Bank is reassured by the imminent arrival of vaccines, but it considers that “the pace and extent of vaccination campaigns on a global scale remain uncertain” and that Canada is not immune to it. other waves of contamination.
“In Canada, the national accounts data for the third quarter were in line with the Bank’s expectations that the economy would rebound strongly after the sharp drop in activity in the second quarter,” we put into perspective. In the job market, jobs lost at the start of the pandemic continue to be recovered, but at a slower pace. However, activity remains very uneven from one sector and from one group of workers to another. ”