Bank of Canada Holds Steady Ahead of Possible July Taper

The Bank of Canada left its key interest rate at a historic low and maintained its current pace of bond purchases in a placeholder decision that should keep expectations intact for another reduction in emergency stimulus next month.

In a statement Wednesday from Ottawa, policy makers led by Governor Tiff Macklem held their overnight policy rate at 0.25%. They also retained a pledge to not raise it until damage from the Covid-19 pandemic is fully repaired. The bank said it would continue to buy C $ 3 billion ($ 2.5 billion) a week of Canadian government bonds, while reiterating that the pace of …