BoC left monetary policy unchanged as widely expected. Overnight rate is kept at effective lower bound of 0.25%. Bank rate and deposit rate correspond at 0.50% and 0.25% respectively. The QE program will continue at at least CAD 5B per week.
In the accompany statement, BoC said the global and Canadian economies are “evolving broadly in line” with July MPR. The strong reopening phase will be followed by a “protracted and uneven recuperation phase, which will be heavily reliant on policy support”.
The central bank maintain the pledge to keep policy rate at ELB ” until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved.”. The QE program will continue ” until the recovery is well underway and will be calibrated to provide the monetary policy stimulus needed to support the recovery and achieve the inflation objective.”
