In an announcement that surprised no one, the Bank of Canada said this morning that the trend-setting policy interest rate is—at least for now—staying at 0.25%. It has been at this level since March 27, 2020.

The rate will be increased when the Bank feels it needs to tap the economic brakes, but it looks like the earliest this will happen is “sometime in the second half of 2022.”

The Bank believes that “the recovery continues to require extraordinary monetary policy support [and remains] committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved.”

“While CPI inflation will likely remain near 3% through the summer, it is expected to ease later in the year, as base-year effects diminish and excess capacity continues to exert downward pressure.”

*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 July 14.

Answer to the previous trivia question: Canola is a member of the Brassicaceae family of plants. This plant family is also known as crucifers (Cruciferae) because their four yellow flower petals form the shape of a cross.

Today’s trivia question: In what year did the Canadian government decide (for the second time) to end the fixed exchange rate and allow the Canadian dollar to float (which it has done ever since)?