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Essentials of Monetary Policy

Bank of Canada (BoC). Monetary Authorities Will Keep Giving the Economy Extraordinary Support

September 9, 2020
François Dupuis • Mathieu D’Anjou • Benoit P. Durocher • Hendrix Vachon

Given that the monetary authorities pledged in July to keep key interest rates at their lower bounds for several more quarters, today’s decision did not come as much of a surprise. The BoC does note that some economic activities have rebounded quickly since containment gradually started lifting, but many problems persist. Among other things, everything suggests that Canada’s economic growth will soon moderate once the ongoing adverse impacts of COVID-19 become more perceptible.