Bank of Canada recently announced that the interest rate will be kept at 0.25%. The interest rate has been in the lowest level since the pandemic started. The government has been trying its hardest to ease economic pressure and encourage consumption in its recovery plan.
The first quarter growth figure was below what was forecasted, but a rebound is expected as we enter into the next phase of re-opening. Nonetheless, we should be aware of a potential third wave given how strong the variants are.
To keep the momentum going, the Bank of Canada will keep the interest rate at 0.25% until what it considers as “economy recovered”. It is expected to happen sometime in the second half of 2022.
We are already observing stronger economic activity happening in Canada as vaccination rate continues to climb and second-dose vaccine wait time is reduced by two months. The sooner the restrictions lift, the quicker it is we head toward recovery.
We hope every country can soon manage its Covid situation because we can rely purely on domestic consumption and production.