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Synopsis
The move over the next quarter is aimed at preventing a tightening of financing conditions while the eurozone economy is still fragile, the bank said in a statement after a meeting of its 25-member governing council.
Reuters
The Frankfurt institution meanwhile left key interest rates unchanged.
FRANKFURT: The European Central Bank said Thursday it would significantly ramp up the pace of its pandemic emergency bond buys, in a bid to soothe market jitters about a rise in government borrowing costs. The move over the next quarter is aimed at preventing a tightening of financing conditions while the eurozone economy is still fragile, the bank said in a statement after a meeting of its 25-member governing council.
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Adrian Wyld/The Canadian Press
The Bank of Canada held fast on its ultralow interest rate and pace of government-bond buying on Wednesday, while acknowledging that the economy weathered the second wave of the pandemic better than expected and is beginning to gather steam.
The central bank kept its policy interest rate at 0.25 per cent, and reiterated that it does not expect to start raising rates until 2023. It also said that it would continue buying $4-billion worth of government of Canada bonds each week, giving few hints as to when it might begin to “taper” its quantitative easing program.
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Chris Wattie/Reuters
The Bank of Canada’s next policy move will be to taper its asset-purchase program following a solid economic rebound and sustained growth later this year, according to a majority of economists in a Reuters Poll.
Despite renewed lockdowns in some provinces and expectations of a slowdown this quarter policy-makers expect a recovery to be driven by a successful vaccine rollout, knock-on effects from a U.S. fiscal package and further gains in oil prices.
When will the Fed taper its multi-trillion bond-buying binge and let interest rates drift up again? That s the to-be-or-not-to-be-in-stocks question worrying Wall Street strategists. The Fed giveth, and the Fed taketh away the punchbowl, when its earlier largesse leads to inflation. Rates rise and the market crashes. But financial history never repeats its