Bank of Canada keeps key interest rate on hold but warns it won’t stay there much longer

The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent, but warning it won’t stay there for much longer.

The rate has been at its rock-bottom level since March 2020 during the first wave of the COVID-19 pandemic. The central bank said the rebound since then and especially over the last few months has been stronger than it anticipated.

To help break down the Bank of Canada’s decision and what’s happening with the markets, Marvin Ryder with McMaster University’s Degroote school of Business joined us with more.