Economics
Bank of Canada Holds Rates, Opens Door to Bond-Buying Tweaks
- Policy makers retain steady rate guidance, quantitative easing
- Central bank says it will calibrate asset purchases as needed
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The Bank of Canada reiterated its pledge to keep interest rates at historic lows for years to come, but dialed back its willingness to take even more aggressive action and said it could adjust its bond purchase program.
In a decision Wednesday from Ottawa, policy makers led by Governor Tiff Macklem held the bank’s benchmark rate at 0.25% and said they’ll leave it unchanged until economic slack is absorbed so that the 2% inflation target is “sustainably achieved.” The central bank also retained a pledge to buy government bonds at the current pace and maintain extraordinary monetary policy stimulus throughout what it calls the recuperation phase of the recovery.