June 3 2020 Bank of Canada Rate Decision

BoC Key Interest Rate Remains At 0.25%

After an economic roller coaster over the last few months today the BoC maintained its overnight interest rate at 0.25%. The bumpy uncertainty of 2020 was caused mainly by the affects of COVID-19 however other aspects like rail blockades, and an oil control war were also factors earlier in the year.

Uncertain Times Starting to Improve?

In todays report the BoC has predicted that the economic impact of the virus has appeared to peaked however we are still in a period of uncertainty until the global recovery plan has proven to be on a successful path.

Positives from this report:

• BoC Projects that the economic affects of the virus appear to have peaked

• The Canadian economy as avoided the most severe scenario in the banks April Monetary Policy Report

• The cost of borrowing money is expected to remain cheap for the foreseeable future.

See the full report here