-
Bank of Canada: Locking down rates for longer
The Bank of Canada left the policy rate unchanged at 0.25% at today’s meeting, but has “recalibrated” its quantitive easing programme by shifting its purchases towards the longer end of the yield curve. Given household and corporate borrowing costs tend to be more influenced by longer-term government borrowing costs, focusing spending here and flattening the yield curve, they believe, gives them more bang for their buck. The BoC have consequently lowered the total asset purchases from “at least C$5bn” a week to “at least” C$4bn per week. In their view this will not lead to any tightening of monetary ... (full story)