The Bank of Canada announced* this morning it is keeping its trendsetting policy interest at 0.25 per cent.

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

Despite signs of economic recovery, the Bank’s “Governing Council judges that the recovery continues to require extraordinary monetary policy support.”

Today’s announcement maintains the stance taken by the Bank in January that the policy interest rate will likely stay at the effective lower bound of 0.25 per cent until 2023.

On the upside, the Bank noted that “the economy is proving to be more resilient than anticipated to the second wave of the virus and the associated containment measures.”

On the downside, “there is still considerable economic slack and a great deal of uncertainty about the evolution of the virus and the path of economic growth. The labour market is a long way from recovery, with employment still well below pre-COVID levels.”

*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 April 21.

Answer to the previous trivia question: There are 159 litres in a standard barrel of oil.

Today’s trivia question: The Bank of Canada opened its doors as a privately owned institution in 1935. In what year did it become a publicly owned institution?