The Bank of Canada (BoC) on Wednesday decided to maintain its target for the overnight rate at the effective lower bound of 0.25%, with the bank rate at 0.5%, and the deposit rate at 0.25%.<\/p>\n\n\n\n
The Bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program.<\/p>
The Bank is recalibrating the QE program to shift purchases towards longer-term bonds, which have more direct influence on the borrowing rates that are most important for households and businesses.<\/p>
At the same time, total purchases will be gradually reduced to at least $4 billion a week.<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
The Bank expects Canada\u2019s economy to grow by almost 4% on average in 2021 and 2022, following a decline of about 5.5% in 2020.<\/p>\n\n\n\n
According to the bank\u2019s monetary policy report, the global and Canadian economic outlooks have evolved largely as anticipated in July, with growth exceeding expectations as markets reopened.<\/p>\n\n\n\n
Looking ahead, rising COVID-19 infections are likely to weigh on the economic outlook in many countries, and growth will continue to rely heavily on policy support.<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
Furthermore, the inflation rate in Canada is expected to stay below the target band of 1-3% until early 2021, largely due to low energy prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Bank of Canada (BoC) on Wednesday decided to maintain its target for the overnight rate at the effective lower bound of 0.25%, with the bank rate at 0.5%, and the deposit rate at 0.25%. The Bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program.The Bank is recalibrating …<\/p>\n","protected":false},"author":10,"featured_media":35104,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[49],"tags":[6932,6895],"class_list":["post-36256","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-economic-reports","tag-boc","tag-canada"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/36256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=36256"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/36256\/revisions"}],"predecessor-version":[{"id":36257,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/36256\/revisions\/36257"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/35104"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=36256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=36256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=36256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}