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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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Bank of Canada Signaling Three Hikes in 2022: RBC's Nye
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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.