OTTAWA (NEWS 1130) – The Bank of Canada isn’t budging. The central bank is keeping its key interest rate target on hold at 0.25 per cent.
The bank is citing the economic conditions and ongoing uncertainty from the pandemic as reasons for its decisions.
It also says that the earlier-than-anticipated arrival of vaccines has reduced economic uncertainty from “extreme levels.”
Still, the bank says it expects the economy to contract in the first quarter of 2021.
The bank forecasts real gross domestic product will decline by 2.8 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 percent in 2023.
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