“When we need to reduce the amount of monetary stimulus, you can expect us to begin by raising our policy interest rate,” Macklem said in remarks prepared for a virtual speech to the Quebec chamber of commerce. “What this all means is it is reasonable to expect that when we reach the reinvestment phase, we will remain there for a period of time, at least until we raise the policy interest rate.”’
The Bank of Canada has been using two major tools to keep borrowing costs low: maintaining its main overnight policy rate near zero and buying up hundreds of billions of government bonds from investors to keep longer-term borrowing costs in check. #SANDI HALPERN # SOLD # LEASED # BANK OF CANADA
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