OTTAWA – The Financial institution of Canada is preserving its key rate of interest goal on maintain because it raises its outlook for financial progress this yr.
The important thing charge stays at 0.25 per cent the place it has held regular for greater than a yr.
The choice got here because the Financial institution of Canada raised its prediction for financial progress this yr to six.5 per cent, up from an earlier forecast of 4.0 per cent.
-Financial institution of Canada maintains in a single day lending charge at 0.25%
-Raises GDP progress goal to six.5% for this yr
-Pulls ahead rate of interest improve steerage to 2nd half 2022
-Reduces bond shopping for to $3 billion per week
— mike eppel (@eppman) April 21, 2021
Financial progress is predicted to reasonable after that, in accordance with the central financial institution’s quarterly outlook report.
The enhancing situations are why the financial institution additionally stated it is going to ease off federal authorities bond purchases that are a part of its quantitative-easing program designed to help the financial system.
The Financial institution of Canada stated it plans to maintain its up its efforts to help the financial system till slack is absorbed and inflation is again at its two-per-cent goal, which the financial institution now sees taking place later subsequent yr.