Bank of Canada Tiff Macklem will provide an economic update on July 15, 2020. (Photo by THE CANADIAN PRESS)

Bank of Canada set to make rate announcement, release economic outlook

Governor Tiff Macklem to speak today

OTTAWA — The Bank of Canada will make its latest interest rate announcement today and update its outlook for the economy.

The central bank’s key interest rate has been at 0.25 per cent since March when it was dropped in response to the economic fallout from COVID-19.

Governor Tiff Macklem has seemingly ruled out any further drops, adding that the central bank doesn’t plan to raise the rate until well into an economic recovery.

In his first speech as governor late last month, Macklem said the central bank expects to see growth in the third quarter of this year as restrictions ease, but warned of a ”prolonged and bumpy” course to recovery.

The bank will outline what Macklem described as a “central planning scenario” for the economy and inflation, as well as related risks — such as local, but not national, lockdowns.

The Bank of Canada said in April that it expected inflation to be close to zero in the second quarter.

The federal government’s economic “snapshot” last week pegged inflation at 0.5 per cent for this year, then rising back to two per cent in 2021.

The reading was based on the average of forecasts from 13 private sector economists.

Statistics Canada data showed the consumer price index posted a year-over-year decline of 0.2 per cent in April followed by a drop of 0.4 per cent in May as lockdowns put a damper on consumer spending.

This report by The Canadian Press was first published July 15, 2020.

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Reeve: Development needs a reminder about public spaces

Ponoka County discusses promises of public access at Meridian Beach

Sylvan Lake welcomes three new family doctors

The three doctors are practicing at the Sylvan Family Health Centre and are accepting new patients

Rimbey RCMP respond to 44 calls for service last week

The files include three assault investigations and one assault with a weapon occurrence

Water quality advisory issued for Gull Lake at Aspen Beach

Elevated levels of fecal bacteria were detected via testing of Gull Lake water, at this beach location

NHL hit with criticism over English-only version of “O Canada” on Saturday

NHL hit with criticism over English-only version of “O Canada” on Saturday

Blackhawks’ Caggiula suspended for Game 2 vs. Oilers

Blackhawks’ Caggiula suspended for Game 2 vs. Oilers

Jets rebound with 3-2 win over Flames, even qualifying series 1-1

Jets rebound with 3-2 win over Flames, even qualifying series 1-1

Penguins beat Canadiens 3-1 in Game 2 to pull even in best-of-five series

Penguins beat Canadiens 3-1 in Game 2 to pull even in best-of-five series

Danielle Kang wins at Inverness in LPGA return to golf

Danielle Kang wins at Inverness in LPGA return to golf

Thomas holds off Koepka to win WGC in Memphis, reclaim No. 1

Thomas holds off Koepka to win WGC in Memphis, reclaim No. 1

Koepka’s biggest challenge is history in bid for 3 in a row

Koepka’s biggest challenge is history in bid for 3 in a row

Vegas, Dallas players kneel for anthems as protests gain momentum at NHL restart

Vegas, Dallas players kneel for anthems as protests gain momentum at NHL restart

Most Read