The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent.
The rate has been on hold at its rock-bottom level since the onset of the pandemic last year and the central bank has said it won’t increase the rate until the economy has recovered.
Today’s announcement points to a recovery sometime in the second half of 2022.
First-quarter growth figures for the Canadian economy came in below the central bank’s forecast, but today’s announcement brushes off the shortfall.
The statement says stronger-than-expected household spending and more imports over the first three months of the year point to rising consumer confidence and resilient demand.
The bank says it expects the Canadian economy to rebound strongly starting this summer as vaccinations proceed at a faster pace and provincial governments ease economic restrictions.