Bank of Canada Interest Rate Announcement - June 3, 2020
The Bank of Canada held its overnight rate at 0.25 percent this morning, a level it considers it's effective lower bound. In the statement accompanying the decision, the Bank noted that incoming data seems to signal that the impact of COVID-19 on the economy has peaked, though there remains significant uncertainty regarding the outlook. The Bank further commented that the Canadian economy appears to have avoided the most severe scenario the Bank had previously presented as a possible outcome of COVID-19, though it does expect a 10-20 percent decline in the level of GDP in the second quarter. However, positive growth is expected to resume in the third quarter.
Like the Bank, BCREA is