OTTAWA — The Bank of Canada took a major step in pulling back on the amount of stimulus it is providing to the economy on Wednesday by ending net new purchases through its quantitative easing program and moving up its forecast for when it could first raise the benchmark overnight interest rate from the current, ultralow level.
The central bank said robust economic growth in Canada has resumed after a spate of weakness during the spring, although it is still being held back by supply constraints. It said it would shift its quantitative easing program to what it refers to as a reinvestment phase, in which the central bank purchases only enough new bonds to replace those that are maturing.
