Bank of Canada to Announce Rates and Release Economic Outlook

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OTTAWA – The Bank of Canada will make its last interest rate announcement today and update its economic outlook. The central bank’s key rate has stood at 0.25% since March, when it was lowered due to the economic spinoffs from COVID-19.

Governor Tiff Macklem has apparently ruled out any further cuts, adding that the central bank does not plan to raise the rate until the start of an economic recovery.

In his first speech as governor at the end of last month, Macklem said the central bank expects growth in the third quarter of this year as restrictions are relaxed, but warned of a trajectory ” prolonged and bumpy ”towards recovery.

The bank will describe what Macklem has described as a “central planning scenario” for the economy and inflation, as well as the associated risks – such as local, but not national, bottlenecks.

The Bank of Canada said in April that it expects near-zero inflation in the second quarter.

The federal government’s economic “photograph” last week set inflation at 0.5% for this year, then fell to 2% in 2021.

The reading was based on the average of forecasts from 13 private sector economists.

Statistics Canada data showed that the consumer price index dropped 0.2% year over year in April, followed by a 0.4% drop in May. restrictions have curbed consumer spending.

This Canadian Press report was first published on July 15, 2020

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