Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on December 15, 2020. Canada’s central bank will update its economic forecast for the country that will offer a window when it expects a recovery from the COVID-19 pandemic to take hold. THE CANADIAN PRESS/Sean Kilpatrick

Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on December 15, 2020. Canada’s central bank will update its economic forecast for the country that will offer a window when it expects a recovery from the COVID-19 pandemic to take hold. THE CANADIAN PRESS/Sean Kilpatrick

Bank of Canada keeps key interest rate target on hold at 0.25%

The central bank is citing the economic conditions and ongoing uncertainty

The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent.

The central bank is citing the economic conditions and ongoing uncertainty from the pandemic as reasons for its decision.

It also says that the earlier-than-anticipated arrival of vaccines has reduced economic uncertainty from “extreme levels.”

Still, the bank says today it expects the Canadian economy to contract in the first quarter of 2021.

The bank forecasts real gross domestic product will decline by 2.9 per cent in the first quarter of the year compared to the same period in 2020, before improving thereafter if severe restrictions start easing in February.

The bank is forecasting growth of four per cent this year, then 4.8 per cent next year, and finally 2.5 per cent in 2023.

This report by The Canadian Press was first published Jan. 20, 2021.

The Canadian Press

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The Fox Mountain Trail Network will undergo a significant machine- and hand-built upgrade thanks to a $253,000 grant from the province’s Rural Economic Recovery program. (Scott Horley photo)
Major Fox Mountain bike trail upgrade project slated to begin this May

A machine-built downhill trail, along with an improved uphill route, are part of the project

Four projects in Williams Lake have received Community Economic Recovery Infrastructure Program funding. (City of Williams Lake photo)
$1.35 million CERIP funds going to projects in Williams Lake

Mayor Walt Cobb thanked the province for its investment in the community

100 Mile RCMP are looking for Haileigh Archie, 18, who was reported missing from her home near Lone Butte. (Photo submitted)
100 Mile RCMP looking for missing teen Haileigh Archie

Archie was reported missing from her home in Lone Butte area on March 4.

City of Williams Lake considering using remainder of COVID Safe Restart Grant to make up for unpaid taxes. (City of Williams Lake photo)
Williams Lake weighs allocating rest of COVID safe restart grant in capital programs

The $546,205 left of the $2.6 million could make up for $746,874 in outstanding taxes

Chief Joe Alphonse
OP-ED: Williams Lake municipal, regional councils lack awareness on historical trauma

Systemic racism isn’t always obvious to those that are not experiencing it

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the B.C. legislature press theatre to give a daily update on the COVID-19 pandemic, April 6, 2020. (B.C. government)
B.C. nears 300,000 COVID-19 vaccinations, essential workers next

564 new cases, four deaths, no new outbreaks Thursday

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Shiromali Krishnaraj arrives from India and receives a mandatory COVID-19 test at Pearson International Airport during the COVID-19 pandemic in Toronto on Monday, Feb. 1, 2021. B.C.’s approved rapid tests also use a nasal swab, with a machine to scan for COVID-19 antibodies. THE CANADIAN PRESS/Nathan Denette
B.C.’s rapid COVID-19 tests have produced only two positive results

Tests deployed for exposures in schools, outbreaks in care homes, jails

BC Emergency Health Services confirmed that a call was received just before 10 a.m. Ground paramedics, as well as an air ambulance, are on the way to the area. (SUSAN QUINN/ Alberni Valley News)
BREAKING: Helicopter goes down on Bowen Island

Unclear how many passengers aboard and unclear where the helicopter was going

The Nanaimo bar display at the Nanaimo Museum. (City of Nanaimo Instagram)
City of Nanaimo points to correct recipe after New York Times botches batch of bars

City addresses ‘controversy’ around dessert square’s layers

A man holds a picture of Chantel Moore during a healing gathering at the B.C. Legislature in Victoria on June 18, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. First Nation demands transparency in probe into second fatal RCMP shooting

‘Police have killed more Tla-o-qui-aht First Nation members than COVID’

Provincial health officer Dr. Bonnie Henry updates B.C. on the COVID-19 situation. (B.C. government)
Dr. Bonnie Henry predicts a ‘post-pandemic world’ for B.C. this summer

‘Extending this second dose provides very high real-world protection to more people, sooner’

The B.C. Supreme Court ruled Feb. 26 that the estate of deceased Sooke man and Hells Angels prospect Michael Widner is to be divided between his wife and his secret spouse. (Black Press Media file photo)
Estate of dead B.C. Hells Angels prospect to be divided between wife, secret spouse

Michael Widner’s 2017 death left a number of unanswered questions

This Dec. 2, 2020 photo provided by Johnson & Johnson shows vials of its Janssen subsidiary’s COVID-19 vaccine in the United States. THE CANADIAN PRESS/AP-Johnson & Johnson via AP
Canada approves Johnson & Johnson’s 1-shot COVID-19 vaccine

It is the 4th vaccine approved in Canada and the 1st that requires just a single dose

Most Read