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

FILE – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

The avalanche came down on the highway sometime Sunday evening (Feb. 21) (Dawson photo)
Road to Bella Coola wharf reopens after large avalanche

The road was closed after a large avalanche covered a significant portion of the highway

Jenni Mueller lives near the wharf on the other side of the avalanche. She took this photo and thinks the avalanche happened around 8 p.m. last night (February 21). (Jenni Mueller photo)
Avalanche closes road to wharf at Bella Coola

A day and night of heavy rain resulted in avalanches across the region

Fisheries and Oceans Canada released it's 2021 Pacific Herring Integrated Fisheries Management Plan Feb. 19. (File photo)
Northern herring opportunities kept to a minimum

2021 management plan caps Prince Rupert fishery at 5 per cent

Williams Lake First Nation government staff are anticipated to return to work Monday, Jan. 25. (Rebecca Dyok photo)
Court orders new hearing over Williams Lake First Nation’s century-old land dispute

A three-judge panel unanimously set aside a 2018 finding by the Specific Claims Tribunal

Dr. Bonnie Henry talk about the next steps in B.C.'s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
456 new COVID-19 cases in B.C., 2 deaths

Since January 2020, 78,278 have tested positive for the novel coronavirus in B.C.

“Support your city” reads a piece of graffiti outside the Ministry of Finance office. (Jane Skrypnek/News Staff)
Slew of anti-bylaw graffiti ‘unacceptable’ says Victoria mayor, police

Downtown businesses, bylaw office and Ministry of Finance vandalized Wednesday morning

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

According to a new poll, a majority of Canadians want to see illicit drugs decriminalized. (THE ASSOCIATED PRESS)
Majority of Canadians think it’s high time to decriminalize illicit drugs: poll

More than two-times the B.C. residents know someone who died from an overdose compared to rest of Canada

Photograph By @KAYLAXANDERSON
VIDEO: Lynx grabs lunch in Kamloops

A lynx surprises a group of ducks and picks one off for lunch

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

Most Read