The Bank of Canada on Wednesday kept its key interest rate at its minimum value of 0.25%.
In a statement, the central bank said its governing council did not expect to hike its policy rate until the second or third quarter of next year. This projection is the same as the last decision on this subject.
The Bank of Canada has also warned that high inflation will continue to emerge for the first half of next year.
The Bank of Canada has indicated that it will take until the second half of 2022 for inflation to return to the central bank’s comfort zone, which is between 1.0% and 3.0%.
By the end of next year, the bank expects annual inflation to slow to 2.1%.
Bank of Canada says it monitors inflation expectations and labor costs, to ensure that the forces pushing up prices do not ultimately have a lasting influence. on inflation.
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