The Bank of Canada’s key policy rate since the start of the pandemic has been at 0.25 per cent, lowered there to prod spending during the COVID-19 induced downturn and subsequent rebound.
Changes in the Bank of Canada’s target for the overnight rate influence the prime rates at the country’s big banks that are used as a benchmark for loans such as variable rate mortgages and home equity lines of credit.
The deal also outlines how the bank should consider climate change in its policies, although leaving it up to governments to hit emissions targets.
Alex Speers-Roesch with Greenpeace said that on the contrary, central bank policy can assist in fighting climate change.