Near-zero interest rates likely until 2023: Bank of Canada

Bank of Canada governor Tiff Macklem says it will take quite some time for the economy to fully recover from the COVID-19 pandemic.

In its latest economic outlook, the bank says a rapid expansion as the Canadian and global economies re-opened has given way to slower growth.

It says Canada's economy won't fully recover what was lost to COVID-19 until 2022 and Macklem says the the path will be uneven over time and across sectors.

The economy is forecast to contract by 5.7 per cent this year but grow by 4.2 per cent next year and 3.7 per cent in 2022.

The outlook was issued as the bank kept its overnight rate target at 0.25 per cent.