Canada’s central bank ends bond purchases – key interest rate unchanged

OTTAWA (dpa-AFX) – Canada’s central bank will end its bond purchase program. It also promised to raise interest rates next year. at first she left base rate But at 0.25 percent, according to a statement published on Wednesday. The Canadian dollar strengthened against all major currencies.
The central bank has so far bought two billion Canadian dollars worth of government bonds. He had periodically reduced his purchases since April. However, reinvestment of expiring bonds must continue. Procurement should propel the economy in the pandemic.

“The global economic recovery from the pandemic is progressing,” the central bank justified its decision. He also mentioned effective vaccines. However, the economy is burdened by delivery bottlenecks and high energy prices. Inflationary pressures are likely to be higher and more durable than expected.

There could be a significant hike in rates in the second or third quarter of 2022. According to the latest estimates, then the economic recovery will end and the inflation target of 2 per cent will be achieved in the long term./jsl/he

Source: dpa-afx