Bank of Canada Interest Rate Announcement - April 21, 2021
The Bank of Canada maintained its overnight rate at 0.25 per cent this morning, a level it considers its effective lower bound. The Bank reiterated what it calls "extraordinary forward guidance" in committing to leaving the overnight rate at 0.25 per cent until slack in the economy is absorbed and inflation sustainably returns to its 2 per cent target. The Bank is now projecting that will occur in the second half of 2022 rather than in 2023. The Bank is also continuing its quantitative easing (QE) program, though it will be reducing its bond purchases from at least $4 billion of Government of Canada bonds per week down to $3 billion per week. In the statement accompanying the |