The Bank of Canada cut rates to 0.25% and initiated a C$5bn per week asset purchase programme in support of the economy as Covid containment measures were brought in to stem the pandemic. As the economy recovered, the Bank of Canada was among the first to start pulling back on the stimulus by tapering the asset purchases down to C$4bn per week in late 2020, before going to $3bn in April 2021 and C$2bn in July 2021. Asset purchases were then abruptly concluded last October with maturing assets reinvested, thus maintaining the size of the balance sheet. Since then, the economy has battled both the Delta and the Omicron ... (full story)