Bank of Canada cuts bond purchases again – key interest rate unchanged | Message

Ottawa (dpa-AFX) – The Central Bank of Canada decided on Wednesday to further reduce its bond purchases. The central bank in Ottawa announced that in the future the central bank will buy only C$2 billion (about €1.35 billion) in government bonds per week. So far, the central bank has bought three billion Canadian dollars worth of paper in a week. The last time purchases were reduced was in April. This is the third reduction overall.

The central bank justified the decision “this adjustment reflects continued progress in the recovery and increased confidence in the Canadian economic outlook.” According to the central bank, inflation is likely to remain above three percent in the second half of the year, but decline again after that. However, this is associated with uncertainties. The central bank aims for a two percent rate.

However, the key interest rate will remain at 0.25%. The interest rate decision was expected in the financial markets. a high rate Not expected until the second half of next year. According to the latest forecasts, only then will the economic recovery end. / jsl/bgf/men

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