Bank of Canada faces challenges on surging inflation

The Bank of Canada will continue pulling back its stimulus that has been in place to support the economy at a policy decision this week, paving the way for the start of interest rate increases next year amid inflation concerns.

Governor Tiff Macklem is expected to reduce weekly government bond purchases by one half on Wednesday to C$1 billion ($809 million).

That measure will mark the fourth time over the past 12 months the central bank has rolled back a program that has poured hundreds of billions into the financial system since the start of the coronavirus pandemic.