The Bank of Canada decided to keep its benchmark interest rate steady at a record-low 0.25 per cent on Wednesday. The central bank also said it would maintain its bond purchases at a target pace of $3 billion per week, a sign of continuing monetary support while economic activity picks up. Despite another wave of COVID-19, first-quarter economic growth came in at a "robust" 5.6 per cent, the bank said. However, renewed lockdowns and other restrictions due to the third wave of the pandemic are dampening economic activity in the second quarter, largely as anticipated, the central bank said. The key lending rate has been on hold at its rock-bottom level since the onset of the pandemic last year and the central bank has said it won't increase the rate until the economy has recovered.

Source: CBC News June 09, 2021 14:43 UTC