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Bank of Canada set to release updated outlook for economy, inflation

Last Updated Oct 28, 2020 at 6:03 am MST

The Bank of Canada building is seen in Ottawa, Wednesday, April 15, 2020. Canada's central bank is turning to the public for input on its inflation-rate target that underlies any changes to the bank's trend-setting interest rate. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — The Bank of Canada will release its updated outlook for the country’s pandemic-plagued economy.

The central bank in July said it believed the country had been spared from a worst-case scenario envisioned in April, but warned things could change.

Governor Tiff Macklem has said a severe second wave of the pandemic, health restrictions that extend beyond December and the timing of a vaccine or other effective treatment could all shift the country’s economic course.

This morning the central bank will provide a more detailed analysis of its forecast for the domestic economy as the country marches through a second wave of COVID-19.

Macklem has said the central bank will keep its key policy rate as low at it can go at 0.25 per cent until the economy has recovered and inflation is back at the bank’s two-per-cent target.

That means experts don’t expect the central bank to change the rate from near-zero when the bank makes its announcement later this morning.

This report by The Canadian Press was first published Oct. 28, 2020.

The Canadian Press