Economics
Bank of Canada Accelerates Potential Timing of Rate Hikes
- Loonie soars, bonds hit hard on hawkish view from Macklem
- Bank revises inflation outlook higher but says it’s transitory
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The Bank of Canada ended its bond-buying stimulus program and accelerated the potential timing of future interest rate increases amid worries that supply disruptions are driving up inflation.
In a statement Wednesday, policymakers led by Governor Tiff Macklem announced they would stop growing holdings of Canadian government bonds, ending a quantitative easing program that has poured hundreds of billions into the financial system since the start of the Covid-19 pandemic.