News Analysis The Bank of Canada gave markets a bit of a surprise when it didn’t raise its key rate on Jan. 26. It stated that the time for extraordinary COVID-19 support is over and multiple interest rate increases are coming. Bank of Canada governor Tiff Macklem said the central bank is taking a very deliberate approach in transitioning monetary policy from one of providing emergency stimulus to one of raising interest rates. “Interest rates will now be on a rising path. This is a significant shift in monetary policy, and we judged that it is appropriate to move forward in a deliberate series of steps,” Macklem said in his opening statement at the BoC’s press conference. But due to Omicron dampening the economy in the first quarter, the BoC decided to keep interest rates unchanged for the time being. The Bank of Canada is very sensitive to public opinion, …
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