Bank of Canada ends quantitative easing

The Bank of Canada took a new major step to pull back on the amount of stimulus it has been providing to support the domestic economy on Wednesday.

The latest step constitutes ending net new purchases through its quantitative easing program and moving up its forecast for when it could decide on the first raise of overnight interest rate from the current, ultra-low level.

BoC said robust economic growth in Canada has resumed after a wave of weakness during the spring, although it is still being held back by supply chain difficulties.

BoC also said it would shift its quantitative easing program to what it refers to as “a reinvestment phase”, in which the central bank purchases barely enough new bonds to replace those maturing.