The Bank of Canada (BoC) maintained its benchmark interest rates unchanged at 0.25 percent on Wednesday, as widely expected.

In its policy statement, the Canadian central bank noted:

• Bank is recalibrating QE program to shift purchases towards longer-term bonds, which have more direct influence on the borrowing rates that are most important for households and businesses; total purchases will be gradually reduced to at least $4 billion week from $5 billion week
• Governing Council judges that, with these combined adjustments, QE program is providing at least as much monetary stimulus as before
• QE program will continue until the recovery is well underway
• Rising COVID-19 infections are likely to weigh on the economic outlook in many countries, and growth will continue to rely heavily on policy support
• U.S. GDP growth appears to be slowing considerably, while China’s economic recovery continues to broaden and recovery in Europe is slowing amid mounting lockdowns
• Canada’s economy is now transitioning to more moderate recuperation phase
• Canada’s economy is expected to grow by almost 4 percent on average in 2021 and 2022
• Despite continued low oil prices, the Canadian dollar has appreciated since July, largely reflecting a broad-based depreciation of the US dollar
• Governing Council will hold policy interest rate at effective lower bound until economic slack is absorbed so that 2-percent inflation target is sustainably achieved; in BoC’s current projection, this does not happen until into 2023
• We are committed to providing monetary policy stimulus needed to support recovery and achieve inflation objective