The Bank of Canada announced that it is maintaining its policy rate at a low of 0.25%.
“The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds roughly constant,” stated a media release.
— Bank of Canada (@bankofcanada) January 26, 2022
This comes after Statistics Canada reported that the country’s annual inflation rate is at its fastest pace since 1991.
The central bank acknowledged the effects of the ongoing pandemic.
“Strong global demand for goods combined with supply bottlenecks that hinder production and transportation are pushing up inflation in most regions,” it stated. “As well, oil prices have rebounded to well above pre-pandemic levels following a decline at the onset of the Omicron variant of COVID-19.”