Bank of Canada Defends Bond Buying, Guidance During Pandemic
- Officials say Macklem’s forward guidance helped lower rates
- Bank to release review of pandemic-era measures early 2025
The Bank of Canada building in Ottawa\
Photographer: David Kawai/BloombergThis article is for subscribers only.
A Bank of Canada official defended the use of quantitative easing and extraordinary forward guidance during the pandemic, pushing back on criticisms that the policy actions were missteps that fueled inflation.
In a speech reviewing the central bank’s actions, Deputy Governor Sharon Kozicki said its first foray into quantitative easing — which led the bank to purchase C$340 billion ($248 billion) in bonds — helped to encourage borrowing by lowering bond yields.