Economic recovery will slow markedly in the fourth quarter this year, partly due to the rising Covid-19 infection cases, the Bank of Canada said on Wednesday.
The Canadian economy is heading into a “more moderate recuperation phase,” where “economic effects of the pandemic are highly uneven across sectors and are particularly affecting low-income workers,” the BOC added.
Looking the global scope, the BOC highlighted the rapid recovery across global economies over the summer period has faded.
The BOC left its benchmark interest unchanged today at 0.25%, while warned that the Covid-19 will hit many economies in the coming months.
As of 12:00 GMT, the U.S. dollar gained 1.10% versus the Canadian dollar at 1.3328, as the dollar strengthened amid haven demand in the market.