While Canada’s economy recorded its largest-ever annual GDP drop of 5.1% last year, it’s also on track to post a comeback in Q4, which could force the Bank of Canada’s hand in reining inflation in sooner than anticipated. “That carries potentially strong policy implications for the Bank of Canada that is increasingly looking as if [&hellip…
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In its latest policy announcement today, the Bank of Canada held its target for the overnight rate at the effective lower bound of 0.25%, with the bank rate at 0.5% percent and the deposit rate at 0.25% percent. “The bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, [&hellip…
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The Bank of Canada will likely leave the overnight lending rate unchanged for the whole of 2021, according to a recent Ratehub.ca forecast. James Laird, co-founder of Ratehub.ca, said that even with the continuous roll-out of COVID-19 vaccines, full economic recovery might take a considerable amount of time. “The bank will be patient in raising rates until [&hellip…
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