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BoC Drops Policy Rate Explicitly Being Primary Tool

CANADA
  • QT still seen as complimenting increases in the policy rate but it drops mention of rates being the primary instrument, potentially opening up the possibility of earlier active QT than initially thought?
Now: "The Governing Council continues to judge that interest rates will need to rise further, and the pace of increases will be guided by the Bank’s ongoing assessment of the economy and inflation. Quantitative tightening continues and is complementing increases in the policy interest rate."


From: "The policy interest rate remains the Bank’s primary monetary policy instrument, with quantitative tightening acting as a complementary tool. "

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