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Bank of Canada seen cutting bond purchases further as lockdowns ease
Canada’s trailblazing central bank is likely to cut its bond-buying program again this year, possibly as soon as July, as provinces ease curbs to contain the coronavirus pandemic and inflation pressures build, analysts said. Strategists from half of Canada’s six largest banks expect the Bank of Canada to dial back its bond purchases to C$2 billion ($1.65 billion) per week or less - from the current level of C$3 billion per week - at the central bank’s July policy announcement, while the remainder see a reduction in October. By April next year or earlier, purchases are likely to be C$1 billion per week or less, ... (full story)