The Bank of Canada said in a statement on Wednesday that it has decided to maintain the target overnight rate at 0.25 percent as the economy emerges from the novel coronavirus-induced crisis
TORONTO (Pakistan Point News / Sputnik - 28th October, 2020) The Bank of Canada said in a statement on Wednesday that it has decided to maintain the target overnight rate at 0.25 percent as the economy emerges from the novel coronavirus-induced crisis.
"The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of 0.25 percent, with the Bank Rate at 0.5 percent and the deposit rate at 0.25 percent," the statement said.
The Bank of Canada also said it will continue its program of quantitative easing but will seek to reduce purchases of government bonds to a weekly rate of $3 billion.
The Canadian economy had a stronger than expected recovery in the summer, the central bank said, but warned that growth may stall in the fourth quarter amid spikes in novel coronavirus cases.
