ANL 12.30 Decreased By ▼ -0.67 (-5.17%)
ASC 14.10 Decreased By ▼ -0.35 (-2.42%)
ASL 15.04 Increased By ▲ 0.09 (0.6%)
AVN 100.25 Increased By ▲ 2.05 (2.09%)
BOP 8.43 Decreased By ▼ -0.06 (-0.71%)
CNERGY 6.40 Decreased By ▼ -0.22 (-3.32%)
FFL 9.07 Decreased By ▼ -0.08 (-0.87%)
FNEL 8.67 Decreased By ▼ -0.29 (-3.24%)
GGGL 13.18 Decreased By ▼ -0.67 (-4.84%)
GGL 19.90 Decreased By ▼ -0.70 (-3.4%)
GTECH 9.40 Decreased By ▼ -0.30 (-3.09%)
HUMNL 6.60 Decreased By ▼ -0.03 (-0.45%)
KEL 3.10 Decreased By ▼ -0.09 (-2.82%)
KOSM 4.05 Increased By ▲ 0.03 (0.75%)
MLCF 33.48 Increased By ▲ 0.65 (1.98%)
PACE 4.06 Increased By ▲ 0.04 (1%)
PIBTL 7.17 Decreased By ▼ -0.03 (-0.42%)
PRL 14.11 Decreased By ▼ -0.28 (-1.95%)
PTC 8.69 Decreased By ▼ -0.21 (-2.36%)
SILK 1.33 No Change ▼ 0.00 (0%)
SNGP 33.60 Decreased By ▼ -0.27 (-0.8%)
TELE 17.25 Decreased By ▼ -0.05 (-0.29%)
TPL 13.02 Decreased By ▼ -1.05 (-7.46%)
TPLP 25.56 Decreased By ▼ -2.07 (-7.49%)
TREET 38.70 Increased By ▲ 0.64 (1.68%)
TRG 81.74 Decreased By ▼ -6.62 (-7.49%)
UNITY 27.31 Increased By ▲ 0.17 (0.63%)
WAVES 14.70 Decreased By ▼ -0.34 (-2.26%)
WTL 2.14 Decreased By ▼ -0.07 (-3.17%)
YOUW 7.54 Decreased By ▼ -0.16 (-2.08%)
BR100 4,585 Increased By 15.6 (0.34%)
BR30 17,569 Decreased By -127.6 (-0.72%)
KSE100 44,826 Decreased By -7.5 (-0.02%)
KSE30 17,666 Increased By 14 (0.08%)

coronavirus
Coronavirus
VERY HIGH
Source: covid.gov.pk
Pakistan Deaths
29,042
524hr
Pakistan Cases
1,345,801
6,80824hr
Sindh
513,046
Punjab
456,992
Balochistan
33,780
Islamabad
113,688
KPK
182,950
Business & Finance

Bank of Canada will not ramp up bond buying, economists say

  • That was despite plans for C$100 billion of fiscal stimulus from the government, ultra-low interest rates and a scheduled C$16 billion of asset purchases per month by the BoC.
04 Dec, 2020

BENGALURU: The Bank of Canada will not increase its asset-purchase programme anytime soon, and the country's gross domestic product should reach pre-COVID-19 levels within two years, economists in a Reuters poll predicted.

Having recorded around 400,000 coronavirus infections, the Canadian government has renewed restrictions in some parts of the country, so economic activity has slowed.

That was despite plans for C$100 billion of fiscal stimulus from the government, ultra-low interest rates and a scheduled C$16 billion of asset purchases per month by the BoC.

The consensus of the Nov. 27-Dec. 4 Reuters poll of 34 economists showed the central bank would leave its interest rate at 0.25pc until the end of 2022.

Over 90pc of economists, or 20 of 22, who replied to an extra question said the BoC would not increase its quantitative-easing programme.

"Monetary policy cannot create demand in this environment - you need actual spending to do that," said James Knightley, chief international economist at ING. "Interest rates are at record lows and financial conditions are accommodative, so there is little more the BoC can do."

Core inflation - the central bank's preferred gauge - was not expected to reach its 2.0pc target anytime soon as demand is expected to remain subdued, according to a separate poll.

The Canadian economy rebounded with annualized 40.5pc growth last quarter after plunging in the second quarter, but the recovery is still shaky. The economy grew only 0.2pc in October and a resurgence in COVID-19 cases has darkened the outlook.

Nearly 60pc, or 14 of 24 economists, said Canada's GDP would take a year or more to reach pre-pandemic levels. Ten respondents said it would within a year.

"While light has finally appeared at the end of the tunnel in the form of vaccine distribution, it will not cure the near-term pain in store for the Canadian economy," said Sri Thanabalasingam, senior economist at TD.

Comments

Comments are closed.