Bank Of Canada Expected To Reduce Bond Buying As Economy Recovers

·1 min read

The Bank of Canada is widely expected to announce that it is rolling back its bond purchases when it releases its quarterly monetary policy report today (October 27).

The central bank is scheduled this morning to announce its latest decision on interest rates and provide an updated forecast for the Canadian economy.

The Bank of Canada's target overnight interest rate has been at 0.25% since the onset of the pandemic, and Governor Tiff Macklem has said that increases won't occur until late next year (2022) when the economy has recovered more from the impacts of COVID-19.

Earlier this month, Macklem suggested that the economy isn’t recovering as quickly as expected because of global supply chain issues and higher inflation.

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That finding could be included in the central bank's quarterly monetary policy report, which sets out the Bank of Canada's forecast for the economy and the pace of inflation over the coming year.

Economists don't expect the Bank of Canada to raise interest rates this week but do anticipate that the central bank will announce a rollback of bond purchases as part of its quantitative easing program.

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