Rates kept steady at 0.25%.
The Bank of Canada has kept their key interest rate at 0.25%, amid forecasts of a steep GDP drop.
Overall, the Bank of Canada is expecting GDP to fall by 7.8% overall this year.
In Q2, the economy contracted by 14.6% year-over-year.
The Bank of Canada projects economic growth of 5.1% in 2021.
Notably, both forecasts are worse than what the Liberal government predicted in their ‘economic snapshot,’ raising even more questions about the information being shared by the Liberals.
The projection of 5.1% growth in 2021 is based on no serious second wave of the CCP Virus – and associated lockdowns – taking place. If that happened, the forecasts would be revised downward.
Additionally, the long-term economic damage is expected to be severe, with economic output in 2022 a full 4% lower than it would have been otherwise.