OTTAWA (DPA-AFX) – Canada’s central bank on Wednesday decided to further reduce its bond purchases. In the future, the central bank will buy government bonds with amounts of only two billion Canadian dollars (about 1.35 billion euros) per week, the central bank in Ottawa announced. So far, the central bank had bought three billion Canadian dollars worth of paper in a week. Last time buying was reduced in April. This is the third reduction overall.
“This adjustment reflects continued progress in the recovery and growing confidence in Canada’s economic outlook,” the central bank justified the decision. According to the central bank, inflation is likely to remain above 3 per cent in the second half of the year, but will then decline. However, it is associated with uncertainties. The central bank is targeting a rate of two per cent.
However, the prime interest rate will remain at 0.25 per cent. Interest rate decisions were expected in the financial markets. a rate increase Not expected until the second half of next year. According to the latest estimates, only then will the economic recovery end./jsl/bgf/men
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