OTTAWA — The Bank of Canada is keeping its key interest rate target on hold.
The central bank says its target for the overnight rate will remain at 0.25 per cent.
It says the impact of the pandemic on the global economy appears to have peaked, although uncertainty about how the recovery will unfold remains high.
This is a breaking news update. Our earlier story follows…
The Bank of Canada is expected to keep its key interest rate unchanged this morning on the first day of governor Tiff Macklem’s tenure.
Economists expect the central bank will maintain its target for the overnight rate at 0.25 per cent, which former governor Stephen Poloz has repeatedly said is as low as it can go.
Poloz and the bank’s governing council would have met over the past few days and finalized the rate decision last night.
Macklem likely would have been part of the meetings, but it’s unlikely that the language of the rate announcement will fully capture his views.
Instead of focusing on the rate itself, experts say they will be paying close attention to the language used in the rate announcement about the expected path for the economy in the coming weeks and months.
Economic reports continue this week with Statistics Canada’s look at the May jobs market scheduled for release Friday.
This report by The Canadian Press was first published June 3, 2020
