Economics
Bank of Canada Set to Slow Its Bond Buying Ahead of G-7 Peers
- Deputy governor maps out route to taper as soon as next month
- Improving outlook puts Macklem on faster track than Fed
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The Bank of Canada is signaling it will be the first Group of Seven central bank to clearly start taking its foot off the gas as the nation’s economic recovery from the Covid-19 crisis accelerates.
Deputy Governor Toni Gravelle used a Tuesday speech to lay out ground rules the central bank will use to slow the pace of its purchases of Canadian government bonds. The quantitative easing program has been a key tool policy makers have used to keep market interest rates low since the pandemic hit a year ago.