End of Quantitative Easing Shadows Liberals’ Consultation on Managing Federal Debt

End of Quantitative Easing Shadows Liberals’ Consultation on Managing Federal Debt
Bank of Canada governor Tiff Macklem speaks during a news conference, in Ottawa on Oct. 27, 2021. The Canadian Press/Adrian Wyld
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OTTAWA—The Bank of Canada’s move to end its pandemic−driven purchases of government bonds to stimulate the economy, and warnings of rate hikes sooner than previously expected, has coloured federal efforts to craft an annual plan to mange the debt.

By the bank’s own estimates, its program dropped rates of return on short−term government debt by 10 basis points, or one−tenth of a percentage point.