Bank of Canada holds rate steady in first decision under new head Tiff Macklem

Canada’s central bank opted to keep its benchmark interest rate right where it was on Wednesday, at 0.25 per cent.

It’s the first rate decision under the stewardship of Tiff Macklem, who took over as governor of the Bank of Canada last month after Stephen Poloz’s seven-year tenure ended.

The bank says it will keep its rate low to stimulate the economy “until economic slack is absorbed so that the two per cent inflation target is sustainably achieved.”

The decision was in line with expectations of economists who monitor the central bank polled by Bloomberg. The bank’s next decision is scheduled for Sept. 9 and no change is expected at that meeting either.

In addition to the interest rate decision, the bank also released its quarterly Monetary Policy Report, which outlines the bank’s outlook for the economy.

Macklem and other officials at the bank will have more to say about their outlook at a news conference on Wednesday scheduled for 11 a.m.

More to come