The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent.
The central bank says the impact of the pandemic on the global economy appears to have peaked, although uncertainty about how the recovery will unfold remains high.
Get weekly money news
READ MORE: Bank of Canada stimulus actions should reach average Canadian, central bank says
The bank say it believes Canada has avoided the worst-case economic scenario painted that it painted in April, updating its GDP figures for the second quarter of the year.
- IBC estimates $230M in insured damage claimed from Edmonton storms
- Alberta First Nation sues Ottawa over $5 treaty annuity, argues amount stuck in 1899
- Jobs hang in the balance as Ekati diamond mine in N.W.T. closing early
- WestJet flight attendants hold information pickets as strike vote takes place
It now expects GDP to decline between 10 and 20 per cent compared with the fourth quarter of 2019, down from the 15 to 30 per cent decline forecasted in April.
In a statement announcing the rate decision, it also says it still expects the economy to resume growth in the third quarter.
Comments
Want to discuss? Please read our Commenting Policy first.