Bank of Canada holds interest rate and ends quantitative easing

The Bank of Canada announced this morning that they will be holding the key interest rate. Therefore, there is no change for those who have a variable rate credit product.

Initially, the rate was expected to maintain the same until the second half of 2022, but the first hike is now expected in the first half of next year. Inflation is also expected to accelerate into early 2022.

The Bank of Canada has also announced the end of the quantitative easing bond buying program, moving into the reinvestment phase where it will purchase Government of Canada bonds solely to replace maturing bonds.

In regards to Covid and and vaccination rates, the global economic recovery is progressing. Pandemic-related disruptions to production and transportation continue to constrain growth, as well as supply chain bottlenecks. Financial conditions still remain accommodative and continues to support economic activity.

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