The Bank of Canada surprised investors by abruptly ending its bond-buying programme on Wednesday and pulling forward its expected timeline for interest rate rises, triggering a heavy sell-off in Canadian government debt.
The announcement puts the BoC at the head of a growing number of central banks that have responded to surging inflation by signalling a shift towards tighter monetary policy. It came as the central bank said “robust economic growth has resumed” in Canada following a pause in the second quarter, as the nation continues to recover from the coronavirus crisis.
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