The Central Bank of Canada decided at the bank’s meeting today, Wednesday, July 14, to keep the current interest rates at 0.25% unchanged, as expected, while the bank decided to reduce its purchases of bonds from 3 billion Canadian dollars per week to 2 billion Canadian dollars, in a clear indication from the bank that the economy Al-Kindi is going through a state of optimism and the speed of economic recovery, as the bank confirmed that it will enhance the low interest levels by completing the bank’s quantitative easing program, which is adjusted according to the target pace of $2 billion per week.

The bank expects the Canadian gross domestic product to grow by 6% this year, 4.5% next year, and about 3.5% in 2023, compared to expectations contained in the bank’s monetary policy report in April, with an increase in expectations of a strong recovery in the second half of this year. After easing restrictions imposed due to the Corona virus in Canada.

The bank expects consumption to lead the economic recovery as households return to more normal spending patterns while housing market activity is expected to decline.

Inflation in Canada reached 3.6% in May, supported by temporary factors, foremost of which is the rise in gasoline prices.

\The bank expects inflation rates to remain higher than 3% during the second half of the year and to decline to 2% next year 2022 with the decline of temporary causes that affect inflation.

The members of the bank stressed that the economic recovery still requires exceptional support for monetary policy, and therefore the bank will maintain low interest rates until the economic stagnation is absorbed and the inflation target is achieved in a sustainable manner, as this matter is expected to happen in the second half of 2022.

The Canadian dollar is trading against the US dollar at 1.2497 levels, after testing 1.2426 levels before the statement.