The Bank of Canada said on Wednesday that it will develop new models and data sources to better understand how climate change is impacting Canada's economy, and said it would include these findings in its quarterly forecasts to help markets price risks.
The Bank of Canada said on Wednesday that it will develop new models and data sources to better understand how climate change is impacting Canada's economy, and said it would include these findings in its quarterly forecasts to help markets price risks.
By Reuters Staff
(Corrects typo in final paragraph)
OTTAWA, Jan 20 (Reuters) - The arrival of a COVID-19 vaccine and strong foreign growth is brightening the outlook for the Canadian economy in the medium term, but the near-term remains choppy with a contraction expected in the first quarter, the Bank of Canada said on Wednesday.
The central bank, outlining its quarterly economic forecasts, said that despite the stronger outlook it does not expect inflation to return sustainably to target until 2023, keeping interest rates at historic lows until that point.
“The medium-term outlook is stronger than in the October Report because of the positive effects from vaccines, greater fiscal stimulus, stronger foreign demand and higher commodity prices,” the Bank of Canada said.