He Bank of Canada, as expected, the reference interest rate remained unchanged at 0.25%. The central bank indicated that it will keep it at the lowest effective level until the idle capacity of the economy is absorbed, leading to the objective of 2% inflation being reached in a sustainable way. From the bank they expect inflation to reach 2% in 2023. The shopping program it remained at its current amount of $ 4 billion per week.
Regarding the exchange rate, The BoC stated that in the event of a greater appreciation, the economy could suffer less growth due to reducing the competitiveness of foreign trade.
On the projections, they estimate that the economy will grow at 4% in 2021, and 4.8% in 2022. The BoC’s forecast looks more optimistic regarding the speed of the recovery.
He loonie rose throughout the market after the meeting. ANDl USD / CAD fell from 1.2685 to 1.2632, approaching the 2021 floor.
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