News

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent.

As the economy recovers from the COVID-19 pandemic, the Bank is forecasting growth of around 6 ½ percent this year, slowing to about 3 ¾ percent in 2022 and 3 ¼ percent in 2023.

Results from the spring Business Outlook Survey suggest that business sentiment continues to improve. Firms reported less uncertainty related to the COVID-19 pandemic and strengthening demand from weak levels. Still, the recovery remains uneven, with firms tied to high-contact services facing ongoing challenges.

The Canadian Survey of Consumer Expectations (CSCE) collects respondents’ views on inflation, the labour market and household finances. The survey for the first quarter of 2021 was conducted from February 15 to March 4, 2021. This period coincides with news of temporary delays in COVID-19 vaccinations in Canada and growing risks from new variants of the virus. The survey was completed before the most recent wave of infections and lockdowns in the largest provinces. Like the previous three surveys, the 2021 first-quarter survey included questions on the impacts of the pandemic and the measures to contain its spread. This survey also asked respondents about their expected economic and social activities once the majority of Canadians have received their COVID-19 vaccine. Similar to the report for the fourth quarter of 2020, this report also provides some details by demographic characteristics.

Over the past two years, we spoke with thousands of Canadians about their views on the economy, inflation and what the Bank does. Here’s what they told us.