The Bank of Canada (BoC) The Bank of Canada (BoC) has decided to maintain its key interest rate unchanged at a record low of 0.25%, as the economy remains in need of support, according to the bank\u2019s statement following its monetary policy meeting on Wednesday.<\/p>\n\n\n\n
The Canadian central bank expects to keep the current level of interest rates until the second half of 2022, compared with a previous estimate of 2023, as this is the time in which the bank expects inflation to return to sustained basis to the 2% target.<\/p>\n\n\n\n
Furthermore, the BoC has decided to reduce its quantitative easing measures by scaling back the massive asset purchase program.<\/p>\n\n\n\n
The weekly net purchases of government bonds will be adjusted to a target of CAD 3 billion.<\/p>\n\n\n\n
\u201cThis adjustment to the amount of incremental stimulus being added each week reflects the progress made in the economic recovery,\u201d the bank explained.<\/p>\n\n\n\n
\u201cThe positive outlook also means that fixed rates should continue to drift up throughout the remainder of 2021.\u201d<\/p>\n\n\n\n
“Housing construction and resales are at historic highs, driven by the desire for more living space, low mortgage rates, and limited supply.\u201d<\/p>\n\n\n\n
“The Bank will continue to monitor the potential risks associated with the rapid rise in house prices.”<\/p>\n\n\n\n
BoC raised its expectations for economic growth in 2021 to 6.5%, up from a previous estimate of 4.0%.<\/p>\n\n\n\n
Starting 2022, growth is expected to moderate, according to the bank\u2019s statement.<\/p>\n\n\n\n
BoC governor Tiff Macklem said the bank welcomes the recent proposal by the superintendent of financial institutions to introduce a fixed floor to minimum qualifying rate for uninsured mortgages<\/p>\n\n\n\n
“New measures just announced in the federal budget will also be helpful.”<\/p>\n\n\n\n
The Canadian Dollar (CAD) continued to decline against the U.S. Dollar (USD) for the third consecutive session, with the USD\/CAD pair closing Wednesday at 1.2633, rising by about 0.19% on a daily basis to its highest closing level since the beginning of the month.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Bank of Canada (BoC) The Bank of Canada (BoC) has decided to maintain its key interest rate unchanged at a record low of 0.25%, as the economy remains in need of support, according to the bank\u2019s statement following its monetary policy meeting on Wednesday. The Canadian central bank expects to keep the current level …<\/p>\n","protected":false},"author":10,"featured_media":42727,"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":[6827,49],"tags":[6895],"class_list":["post-44759","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","tag-canada"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/44759","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=44759"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/44759\/revisions"}],"predecessor-version":[{"id":44760,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/44759\/revisions\/44760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/42727"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=44759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=44759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=44759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}