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Bank of Canada Boosts Inflation Forecast, Dials Back Bond Buying

  • Quantitative easing program is cut to C$2 billion per week
  • Macklem now seen as one of most hawkish major central bankers
Tiff Macklem.
Tiff Macklem.Photographer: Sean Kilpatrick/Canadian Press/Bloomberg
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The Bank of Canada took another big step to rein in emergency levels of stimulus, once again tapering its bond purchases in a sign of optimism about the speed of the recovery.

Policy makers led by Governor Tiff Macklem said Wednesday that they would reduce their weekly purchases of government debt by one-third to C$2 billion ($1.6 billion). Officials held the benchmark overnight interest rate at 0.25%, while indicating they don’t expect any hikes before at least the second half of next year -- in line with previous guidance.