Rock-Bottom Rates Are Here to Stay: Canada’s Two-Year Financial Markets Outlook
The Conference Board of Canada, 15 pages,
October 21, 2020
This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on financial markets. For an overview of all major compo-nents of the economy, go to the Canadian Outlook main page.
- After cutting rates to near zero during the first wave of the pandemic, the Bank of Canada and the U.S. Federal Reserve will leave rates untouched until at least 2023.
- Following the sharp second-quarter plunge in Canada’s economy, a significant amount of excess slack built up that will take years to absorb.
- Inflationary pressures will start to emerge in 2021.
- The Canadian dollar is forecast to trade below US$0.80 throughout the forecast.