Bank of Canada expected to hold interest rates steady in morning announcement

·1 min read
Governor of the Bank of Canada Tiff Macklem holds a press conference at the Bank Of Canada in Ottawa on Wednesday, Oct. 28, 2020. In his Sept. 8, 2021 update, he is widely expected to announce that rates will remained unchanged. (Sean Kilpatrick/The Canadian Press - image credit)
Governor of the Bank of Canada Tiff Macklem holds a press conference at the Bank Of Canada in Ottawa on Wednesday, Oct. 28, 2020. In his Sept. 8, 2021 update, he is widely expected to announce that rates will remained unchanged. (Sean Kilpatrick/The Canadian Press - image credit)

The Bank of Canada will make its latest interest announcement this morning.

Economists expect the central bank will keep its key interest rate target on hold at 0.25 per cent, however they will be looking to see what it has to say about the economy.

The interest rate decision comes ahead of a speech by Bank of Canada governor Tiff Macklem on Thursday.

The Bank of Canada has said it will keep its trend-setting rate at near-zero until the economy is ready to handle an increase in rates, which it doesn't expect to happen before the second half of 2022.

The central bank lowered its expectations for economic growth this year in July.

At the time it said it expected the economy to grow 6.0 per cent in 2021, down from its previous forecast of 6.5 per cent. However, it raised its outlook for next year to predict growth of 4.6 per cent in 2022, up from its earlier forecast of 3.7 per cent.

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