For the fifth time in a row, the Bank of Canada has announced* that it is keeping its key policy interest at 0.25 per cent.

The promise of widespread vaccinations next year did not change the Bank’s position on the continuing need to support the economy by keeping interest rates low.

The Bank also announced that it will maintain its quantitative easing program at its current pace of at least $4 billion per week.

According to the Bank, “Canada’s economic recovery will continue to require extraordinary monetary policy support. The Governing Council will hold the policy interest rate at the effective lower bound [of 0.25 per cent] until economic slack is absorbed so that the 2 per cent inflation target is sustainably achieved.”

The Bank does not expect this to happen until 2023.

The Bank also noted that “measures of core inflation are all below 2 percent, and considerable economic slack is expected to continue to weigh on inflation for some time.”

*Each year, the Bank of Canada sets eight fixed dates on which it announces whether or not it will change its policy interest rate. The next announcement is scheduled for January 20.

ANSWER to Tuesday's trivia question: What was Alberta's share of Canada’s international energy exports in October? 69.2 per cent.

Today’s question: When was the last time the Bank of Canada’s policy interest rate was above 10 per cent?