Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on December 15, 2020. Canada’s central bank will update its economic forecast for the country that will offer a window when it expects a recovery from the COVID-19 pandemic to take hold. THE CANADIAN PRESS/Sean Kilpatrick

Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on December 15, 2020. Canada’s central bank will update its economic forecast for the country that will offer a window when it expects a recovery from the COVID-19 pandemic to take hold. THE CANADIAN PRESS/Sean Kilpatrick

Bank of Canada keeps key interest rate target on hold at 0.25%

The central bank is citing the economic conditions and ongoing uncertainty

The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent.

The central bank is citing the economic conditions and ongoing uncertainty from the pandemic as reasons for its decision.

It also says that the earlier-than-anticipated arrival of vaccines has reduced economic uncertainty from “extreme levels.”

Still, the bank says today it expects the Canadian economy to contract in the first quarter of 2021.

The bank forecasts real gross domestic product will decline by 2.9 per cent in the first quarter of the year compared to the same period in 2020, before improving thereafter if severe restrictions start easing in February.

The bank is forecasting growth of four per cent this year, then 4.8 per cent next year, and finally 2.5 per cent in 2023.

This report by The Canadian Press was first published Jan. 20, 2021.

The Canadian Press

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

L-R (pre-COVID): Sharla Walkey, Director BCLA; Christine Chandler, President BCLA; and Lila Reynolds, Vice President BCLA; work towards advocating for those in B.C. dealing with Lymphedema while dealing with Lymphedema themselves. Please note this photo was taken pre-pandemic. Photo: Willa Condy Seymour
World Lymphedema Day goes virtual this year

It is estimated that there are over 130,000 people in B.C. with Lymphedema

Volunteers dedicate themselves year round supporting and helping to feed several hundred patrons at the Trail United Church food bank. Photo: Rylee Edwards
Poem praises Canada’s food banks

Garth Ukrainetz shares a piece he penned as a tribute to the Edmonton Food Bank

Nelson’s Dr. Nic Sparrow with KERPA’s new heart monitor. Photo: Submitted
Kootenay emergency response group gets critical new equipment

KERPA has just purchased a $30,000 heart monitor

Castlegar doctor Megan Taylor contracted COVID-19 in November. This photo was taken before the pandemic. Photo: Submitted
MY COVID STORY: From doctor to patient

Castlegar doctor shares her COVID experience

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. (THE CANADIAN PRESS/Paul Chiasson)
30 new COVID-19 cases, five more deaths in Interior Health

This brings the total number of cases to 7,271 since testing began

Dr. Bonnie Henry talk about the next steps in B.C.'s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
456 new COVID-19 cases in B.C., 2 deaths

Since January 2020, 78,278 have tested positive for the novel coronavirus in B.C.

“Support your city” reads a piece of graffiti outside the Ministry of Finance office. (Jane Skrypnek/News Staff)
Slew of anti-bylaw graffiti ‘unacceptable’ says Victoria mayor, police

Downtown businesses, bylaw office and Ministry of Finance vandalized Wednesday morning

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

According to a new poll, a majority of Canadians want to see illicit drugs decriminalized. (THE ASSOCIATED PRESS)
Majority of Canadians think it’s high time to decriminalize illicit drugs: poll

More than two-times the B.C. residents know someone who died from an overdose compared to rest of Canada

Interior Health officially declared a COVID-19 outbreak at Creekside Landing in Vernon on Jan. 3, which was followed by the first death from the virus 10 days later. (Kaigo photo)
COVID outbreak over at Vernon care home

Creekside Landing cleared of coronavirus, despite additional death in last day

Photograph By @KAYLAXANDERSON
VIDEO: Lynx grabs lunch in Kamloops

A lynx surprises a group of ducks and picks one off for lunch

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

Most Read