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BRIEF-Bank Of Canada leaves overnight interest rate at 0.25%

Published 2020-07-15, 10:08 a/m

July 15 (Reuters) -

* BANK OF CANADA LEAVES O/N INTEREST RATE AT 0.25%

* BANK OF CANADA SAYS WILL CONTINUE WITH LARGE-SCALE ASSET PURCHASES OF AT LEAST C$5 BILLION PER WEEK OF GOVERNMENT OF CANADA BONDS

* BANK OF CANADA SAYS ECONOMY WILL CONTINUE TO REQUIRE EXTRAORDINARY MONETARY POLICY SUPPORT

* BOC SAYS IT WILL HOLD THE POLICY INTEREST RATE AT THE EFFECTIVE LOWER BOUND UNTIL ECONOMIC SLACK IS ABSORBED SO THAT THE 2% INFLATION TARGET IS SUSTAINABLY ACHIEVED

* BOC SAYS TO SUPPORT THE RECOVERY AND ACHIEVE THE INFLATION OBJECTIVE, IT IS PREPARED TO PROVIDE FURTHER MONETARY STIMULUS AS NEEDED

* BOC SAYS WHILE ECONOMIES ARE RE-OPENING, THE GLOBAL AND CANADIAN OUTLOOK IS EXTREMELY UNCERTAIN

* BOC SAYS THERE ARE EARLY SIGNS THAT THE REOPENING OF BUSINESSES AND PENT-UP DEMAND ARE LEADING TO AN INITIAL BOUNCE-BACK IN EMPLOYMENT AND OUTPUT

* BANK SAYS IT EXPECTS ECONOMIC SLACK TO PERSIST AS THE RECOVERY IN DEMAND LAGS THAT OF SUPPLY, CREATING SIGNIFICANT DISINFLATIONARY PRESSURES

* BOC REITERATES THAT IT STANDS READY TO ADJUST ITS PROGRAMS IF MARKET CONDITIONS WARRANT

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