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Bank of Canada sees economy below pre-coronavirus levels until 2022

Christian Fernsby ▼ | July 15, 2020
Canada’s economic activity will not return to pre-pandemic levels until 2022 and interest rates will remain low for an extended period, the Bank of Canada said.
Tiff Macklem
Governor   Tiff Macklem
The central bank sees a long, slow recovery and will keep its quantitative easing programs in place until that recovery is “well under way,” Bank of Canada Governor Tiff Macklem told reporters after the decision.

“We recognize that households and businesses are facing an unusual amount of uncertainty. Against that background, we are being unusually clear that interest rates are going to be low for a long time,” Macklem said.

The outlook for the economic recovery in the United States, meanwhile, has dimmed amid a rapid rise in cases of the new coronavirus, which will impact Canadian exports, Macklem said. The U.S. is Canada’s largest trading partner.