Bank of Canada keeps rates at 0.25%, raises country’s economic outlook No ratings yet.

Bank of Canada keeps rates at 0.25%, raises country’s economic outlook
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The Bank of Canada on Wednesday announced it is keeping its key interest rate target on hold as it raises its outlook for economic growth this year.

The key rate remains at 0.25 per cent where it has been for more than a year.

The decision came as the Bank of Canada raised its prediction for economic growth this year to 6.5 per cent, up from an earlier forecast of 4.0 per cent.

READ MORE: Consumers expect to return to pre-COVID-19 spending within a year, Bank of Canada says

Economic growth is expected to moderate after that, according to the central bank’s quarterly outlook report.

The improving conditions are why the bank also says today it will ease off federal government bond purchases which are part of its quantitative-easing program designed to aid the economy.

The Bank of Canada says it plans to keep its up its efforts to aid the economy until slack is absorbed and inflation is back at its two-per-cent target, which the bank now sees happening later next year.

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