The Bank of Canada left its benchmark interest rate unchanged and reiterated its commitment to keep interest rates at historically low levels. The central bank has not made any adjustments to monetary policy.

The benchmark overnight interest rate remained at 0.25%, according to a statement issued on Wednesday, and the central bank reiterated that it would not raise borrowing costs until the losses caused by the epidemic were fully repaired. The central bank predicts that a full recovery may not be until 2023. As part of the stimulus, the bank also pledged to buy Canadian government bonds worth at least C $4 billion ($3.1 billion) a week, although it hinted that purchases could be cut once the economic recovery is solid.

"although the economic outlook has improved, the committee believes that the recovery still needs extraordinary monetary policy support," the central bank said in a policy statement. The short-term outlook has become more optimistic, but the economy is still significantly weak, and there is still a lot of uncertainty about the progress of the epidemic and the trajectory of economic growth. "

Economists have been expecting the Bank of Canada to start reducing asset purchases soon because of signs that the economy is stronger than the Bank of Canada expected two months ago.

"the labour market is still a long way from recovery and employment is still much lower than it was before the outbreak," the Bank of Canada said. "

"it sounds like the central bank will not withdraw its stimulus policy as soon as the market expects," said Simon Harvey, a senior foreign exchange market analyst at Monex Canada.