- Interest rates will stay at historic lows for years to come or until the 2% inflation target is "sustainably achieved."
- The Bank will continue buying government bonds at the current pace and maintain its monetary policy through the recovery phase of the pandemic.
- In a change from July, the Bank indicated it may ease off the quantitative easing a bit and removed language about being prepared to offer more stimulus.
The Bank is a key (maybe the key) player in the economic recovery ahead because they are best positioned make cheap credit available and keep financial markets stable.
What the Bank is doing:
- Buying large amounts of government bonds which keeps the bond market liquid and allows governments to ramp up deficit spending needed to fund emergency programs.
- Growing their balance sheet by buying other assets like treasury bills and mortgage bonds to mitigate risk to the rest of the financial sector.
- Provide credit to individual banks and financial institutions to support their lending to businesses and households.
What's next: Bank Governor Tiff Macklem is scheduled to hold a full news conference today where more details may be revealed.