Bank of Canada keeps interest rate, says it will limit bond purchases

OTTAWA, July 14 (Reuters) – The Bank of Canada kept its overnight key rate at an all-time high of 0.25% as expected on Wednesday and announced it would cut back its weekly net purchases of Government of Canada bonds to a target of C $ 2 billion ($ 1.6 billion) versus C $ 3 billion.

In a statement, the central bank said it remained committed to keeping the interest rate unchanged until the economic downturn was absorbed. This is expected to happen in the second half of 2022.

($ 1 = 1.2458 Canadian dollars)

Report by Julie Gordon in Ottawa

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