Bank of Canada governor Tiff Macklem and the six deputies on Governing Council increased the benchmark interest rate to one per cent from 0.5 per cent, the biggest one-time increase in borrowing costs since 2000.
Under QE, the central bank created hundreds of billions of dollars to purchase government bonds. It stopped creating money to buy bonds last year, but as the assets it purchased during the COVID-19 recession matured, it had been using the proceeds to purchase more bonds. The central bank will no longer do that, removing itself as an active buyer in the debt market.Article contentThe Bank of Canada said gross domestic product will increase 4.2 per cent this year and 3.
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