Bank of Canada scheduled to make last rate call of 2021

The Bank of Canada is keeping its key interest rate target on hold at its rock-bottom level of 0.25 per cent.

In a statement, the central bank also says senior decision-makers don’t expect to raise the trendsetting rate until some time between April and September next year, which is unchanged from its previous guidance.

The Bank of Canada also warns that high inflation rates will continue through the first half of next year.

The Bank of Canada says it won’t be until the second half of 2022 that inflation falls back towards the bank’s comfort zone of between one and three per cent.

By the end of next year, the bank is forecasting the annual inflation rate to fall to 2.1 per cent.

The bank says it is keeping a close eye on expectations for price growth and wage growth to make sure they don’t create a spiral of price increases.

This report by The Canadian Press was first published Dec. 8, 2021.

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