Bank of Canada plans to freeze interest rates at near zero until 2023

The Bank of Canada has announced that it is keeping interest rates near zero.

The central bank also indicated that interest rates are going to remain low until 2023.

The bank slashed its key rate to the lowest level of 0.25 percent on March 27, 2020 to contain the economic fallout from the COVID-19 pandemic.

This rate will hold steady over the next two years.

In a statement Wednesday (October 28), the Bank of Canada said that as the economy recovers, it will “continue to require extraordinary monetary policy support”.

“The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved,” the bank announced.

“In our current projection, this does not happen until into 2023,” the central bank continued.

Here’s the bank’s statement.