China News Service, Toronto, October 28 (Reporter Yu Ruidong) The Bank of Canada announced on October 28 that it will maintain the benchmark interest rate, which is the overnight lending rate, at the effective lower limit of 0.25%.
The Bank of Canada will maintain this level of interest rates until the 2% inflation target is achieved in a sustainable manner, which is currently forecast to be achieved in 2023.
In September this year, Canada’s consumer price index inflation rate was 0.5%.
The Bank of Canada believes that there is still a long process for the country's economy to fully recover.
The bank is adjusting its quantitative easing program to shift its focus to long-term bonds, while the total purchase volume will be gradually reduced from at least 5 billion Canadian dollars a week to 4 billion Canadian dollars.
The Bank of Canada predicts that global GDP will shrink by about 4% in 2020, and the overall growth of the economies is currently slowing.
The rebound of the epidemic may cause the economic growth of many countries to continue to rely heavily on policy support.
The Bank of Canada lowered its forecast for growth in Canada during the forecast period.
Its forecast is that the Canadian economy will shrink by about 5.7% in 2020, and will grow by an average of nearly 4% in 2021 and 2022.
Canadian Deputy Prime Minister and Treasury Secretary Freeland said at the Toronto Global Forum on the 28th that the current financial relief measures will be limited and temporary. “There will be no blank checks and no free lunch.”
But she also said that even if Canada is experiencing the largest deficit level since World War II, the Canadian federal government still has the ability to continue to provide relief support to businesses and individuals in response to the epidemic, and if these policies are terminated prematurely, it will endanger economic recovery.
(Finish)