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MNI BOC REVIEW - December 2020: Steady On

MNI BOC Review - DECEMBER 2020: Steady On

Holding Lower Bound


As expected, the Bank of Canada left the target rate on hold at 0.25% (the sixth consecutive time), while holding QE steady after extending duration/reducing size of purchases at the October policy announcement. Recent Covid vaccine developments provided some positive news but inventory and wide-spread distribution remains will take well into 2021 to reach a majority of Canadians, tempering forward expectations.

There was no Monetary Policy Report or press conference following Wednesday's rate announcement, but Deputy Governor Paul Beaudry will present the Economic Progress Report "Our quantitative easing operations: Looking under the hood" via video conference on Thursday at 1330ET (media Q&A at approximately 1450ET).

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MNI BOC Policy Review

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