The Bank of Canada on Wednesday kept its key interest rate at a record low of 0.25%. Earlier, the head of the Canadian Central Bank, Tiff Maclem, said that the rate would remain unchanged for at least two years amid a slow economic recovery after the coronavirus pandemic. Representatives of the regulator also noted that in the next two years, the country's economy will experience excess supply, which will lead to keeping inflation below the target level (2%) until 2022. Also, the central bank stressed that the recovery process of the Canadian economy will be long and uneven. The Bank also raised its growth forecast for the third quarter to 47.5% on an annualized basis. He also predicts stronger annual growth in 2020, although he lowered his forecast for 2021.
