Steady Rates Will Help Guide Recovery: Canada’s Two-Year Financial Markets Outlook

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 components of the economy, go to the Canadian Outlook main page.

Documents Highlights

• The Bank of Canada and the U.S. Federal Reserve will maintain their interest rates at current lows until 2023.
• Inflation will rise in 2021 and 2022, with the total and core inflation rates converging to 2 per cent in 2023.
• The Canadian dollar is expected to gradually appreciate, reaching US$0.80 by 2024.
• Major economies will recover slowly, on the backs of highly accommodative monetary policies