The Bank of Canada's recent moves on Quantitative Easing
On 23rd March, Bank of Canada announced the discontinuation of market functioning programs introduced during COVID-19, according to the deputy governor Toni Gravelle.
MM analysis
The discontinuation included the Commercial Paper Purchase Program (CPPP), the Provincial Bond Purchase Program (PBPP), and the Corporate Bond Purchase Program (CBPP), these programs would be deactivated on April and May. In addition, the Bank is announcing changes to its Term Repo operations and the Contingent Term RepoFacility (CTRF).
The bank would look at raising its key interest rate from 0.25 per cent, which it doesn’t foresee happening until 2023. The bank of Canada is the first developed country to imply it's end of quantitative easing. The Canadian dollar recorded a slight increase on 23rd March.
MM analysis
The discontinuation included the Commercial Paper Purchase Program (CPPP), the Provincial Bond Purchase Program (PBPP), and the Corporate Bond Purchase Program (CBPP), these programs would be deactivated on April and May. In addition, the Bank is announcing changes to its Term Repo operations and the Contingent Term RepoFacility (CTRF).
The bank would look at raising its key interest rate from 0.25 per cent, which it doesn’t foresee happening until 2023. The bank of Canada is the first developed country to imply it's end of quantitative easing. The Canadian dollar recorded a slight increase on 23rd March.