• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Bank of Canada holds rates, still sees economic recovery in second half

September 8, 2021 by David Barret Leave a Comment

September 8, 2021

By Julie Gordon

OTTAWA (Reuters) -The Bank of Canada left rates unchanged on Wednesday and said it expects growth to strengthen in the second half following a shock contraction last quarter, though a fourth wave of COVID-19 and supply bottlenecks could weigh on the recovery.

As expected, the central bank left its key interest rate at a record low 0.25% and maintained its current quantitative easing program, in a regular rate decision less than two weeks ahead of a hotly contested https://ift.tt/2WWI6Fo federal election.

“The Bank continues to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery,” the Bank of Canada said in a statement.

The central bank kept its guidance that economic slack would be absorbed sometime in the second half of 2022, even with the surprise economic contraction in the second quarter and a softer start to the third quarter.

“I detected a hint of cautious optimism that the soft patch we’re going through is something they’re prepared to look through,” said Derek Holt, head of capital market economics at Scotiabank.

“For now they’re still planning that first rate hike to happen … sometime in the second half of 2022,” he added.

Canada’s economy unexpectedly shrank in the second quarter, data showed last week, and a preliminary estimate for July showed another contraction, putting economic activity https://ift.tt/3mURNPL front and center on Canada’s campaign trail.

Analysts said the central bank’s statement was unlikely to cause ripples ahead of the Sept. 20 vote, a race between the ruling Liberals and their main rival https://ift.tt/2Vp483k Conservatives.

“The Bank has probably gone about as far as they could to stay out of the election, and to make this as neutral a statement as possible,” said Doug Porter, chief economist at BMO Capital Markets.

The Canadian dollar was trading 0.8% lower at 1.2748 to the greenback, or 78.44 U.S. cents, its second day of sharp declines.

($1 = 1.2691 Canadian dollars)

(Reporting by Julie Gordon in Ottawa, additional reporting by Fergal Smith and Nichola Saminather in Toronto and Nia WilliamsEditing by Nick Zieminski)

Source Link Bank of Canada holds rates, still sees economic recovery in second half

David Barret
David Barret

Related posts:

  1. First trailer for Netflix’s Red Notice crams in massive star power and big action
  2. U.S. has no plans to release billions in Afghan assets, Treasury says
  3. Exclusive-Ericsson CEO to double down on China as 5G tussle rumbles on
  4. Cricket-Pope and Bairstow rebuild England innings after Yadav blows

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Think You Know What A Bald Eagle Sounds Like? Think Again
  • GLP-1s: Your No-Nonsense Guide To The Latest Science Behind The “Skinny Jabs”
  • Deep In Virginia, When The Light Hits Just Right, A “Rainbow Swamp” Appears
  • New Approach To Einstein’s Equations Might Tell Us What Happened Before The Big Bang
  • Air Pollution From Oil And Gas Causes 91,000 Premature Deaths In The US Every Year
  • The Secret To Saving Bees Might Be… Yeast?
  • Miles Below Earth’s Surface, Scientists Found A Giant Ecosystem Teeming With Life
  • Asteroids Bennu And Ryugu Could Be Siblings – And We Might Have Found Their Parent
  • Meet The Spectral Bat, The Largest Carnivorous Bat Species In The World
  • Have You Seen This Snake? Florida Wants Your Help Finding Rare Species Seen Once In 50 Years
  • Plague Confirmed In Lake Tahoe Area For First Time In 5 Years, California Officials Say
  • Supergiant Star Spotted Blowing Milky Way’s Largest Bubble Of Its Kind, Surprising Astronomers
  • Game Theory Promised To Explain Human Decisions. Did It?
  • Genes, Hormones, And Hairstyling – Here Are Some Causes Of Hair Loss You Might Not Have Heard Of
  • Answer To 30-Year-Old Mystery Code Embedded In The Kryptos CIA Sculpture To Be Sold At Auction
  • Merry Mice: Human Brain Cells Transplanted Into Mice Reduce Anxiety And Depression
  • Asteroid-Bound NASA Mission Snaps Earth-Moon Portrait From 290 Million Kilometers Away
  • Forget State Mammals – Some States Have Official Dinosaurs, And They’re Awesome
  • Female Jumping Spiders Of Two Species Prefer The Sexy Red Males Of One, Leading To Hybridization
  • Why Is It So Difficult To Find New Moons In The Solar System?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version