The Bank of Canada is keeping its target for the overnight rate at 1/4 per cent. The Bank says economic activity is bouncing back as countries lift containment measures. The Bank expects the strong reopening phase to be followed by a protracted and uneven recuperation phase. The pace of the recovery remains highly dependent on the path of the COVID-19 pandemic and the evolution of social distancing measures.

The bank says the Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the two per cent inflation target is sustainably achieved.