Bank of Canada’s Inflation-Fighting Strategy May Not Be Enough

Bank of Canada’s Inflation-Fighting Strategy May Not Be Enough
Bank of Canada Governor Tiff Macklem speaks during a news conference in Ottawa on Oct. 27, 2021. The Canadian Press/Adrian Wyld
Steven Globerman
Updated:
Commentary
The Bank of Canada recently announced it would maintain the overnight rate it charges commercial banks to borrow from the central bank at 0.5 percent, and maintain the rate it offers those banks to keep reserves at the central bank at 0.25 percent. The bank also said it was ending its program of quantitative easing (QE) and moving into a “reinvestment” phase where it will purchase Government of Canada bonds solely to replace maturing bonds at a still substantial rate of $4 billion to $5 billion per month.
Steven Globerman
Steven Globerman
Author
Steven Globerman is a resident scholar at the Fraser Institute.
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