Ottawa (Canada), December 10: The Bank of Canada announced on Wednesday to continue keeping its benchmark interest rate at 0.25 percent.
The Canadian central bank cut its rate to the current record low of 0.25 percent in April amid the raging COVID-19 pandemic.
In today's announcement, the central bank said its rate will remain at a low level into 2023.
"Canada's economic recovery will continue to require extraordinary monetary policy support," the bank said. "We remain committed to providing the monetary policy stimulus needed to support the recovery."
In October, the bank said it would keep the rate at its 0.25 percent level until at least 2023 because it would take the country a long time to make a full economic recovery.
The bank noted that Canada's economic momentum appeared stronger than expected heading into the fourth quarter of 2020, but saying record levels of newly increases COVID-19 cases were set to weigh on the growth in the first quarter of 2021.
It said that while new COVID-19 cases and lockdowns continue to hold back the Canadian economy, stronger demand for energy has pushed up the price of oil, which is giving it a boost. And news of looming vaccines rolling out is also helping.
"News on the development of effective vaccines is providing reassurance that the pandemic will end and more normal activities will resume, although the pace and breadth of the global rollout of vaccinations remain uncertain," the bank said.