The Bank of Canada said it anticipates interest rates to persist at the current record lows until 2023.  It has turned its attention to asset purchase programs and long term bonds, while warning of an arduous post pandemic recovery.

The central bank also explained that a second wave of coronavirus infections would have a notable effect on Canada's short-term growth plans. A recent surge in infections has resulted in more restrictions.

"If you are a household considering making a major purchase, if you're a business considering investing, you can be confident that interest rates will be low for a long time," Governor Tiff Macklem told reporters at a press conference.

The BOC now forecasts a more minor economic downtick in 2020 than previously expected, while also adjusting its growth outlook for 2021. It expects a correction for the start of 2022.

"What we're saying is, 'We're going to get through this, but it's going to be a long slog,'" stated Macklem. He also clarified previous statements on negative rates, saying the bar "would be very high."

"In the current situation, it's not something that we think would be very helpful, in fact it could be disruptive," he explained.

The BOC's projections assume coronavirus outbreaks will be contained by restrictive measures. As of end of day Tuesday, deaths had reached 10,0000 in Canada.

"There is a serious risk.... that broader or more intensive restrictions could be required," stated the central bank, in its quarterly Monetary Policy Report.

Localized outbreaks and containment strategies will most likely result in unusual and uneven quarterly gain patterns with varying levels of recovery across industries.