{"id":55169,"date":"2025-01-17T18:38:27","date_gmt":"2025-01-17T18:38:27","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/01\/17\/bank-of-canada-promises-better-quantitative-easing-communication\/"},"modified":"2025-01-17T18:38:27","modified_gmt":"2025-01-17T18:38:27","slug":"bank-of-canada-promises-better-quantitative-easing-communication","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/01\/17\/bank-of-canada-promises-better-quantitative-easing-communication\/","title":{"rendered":"Bank of Canada promises better quantitative easing communication"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">News<\/li>\n<li class=\"breadcrumbs__item\">Economy<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">Report into central bank&#8217;s actions taken during the pandemic highlights lessons learned<\/p>\n<div class=\"article-meta\">\n<p><span class=\"published-date__since\">Published Jan 17, 2025<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span><\/p>\n<div class=\"article-meta__bottom\">\n<div class=\"bookmark-wrapper\">\n<div class=\"popover\" data-aqa=\"popover\" data-click-to-appear=\"True\" data-container=\"\" data-container-offset=\"\" data-no-style=\"\" data-popover-component=\"\" data-position=\"top\" data-sticky=\"\" data-tail-offset=\"200\" data-tail-position=\"right\"><button class=\"popover__trigger bookmark-button\"><span class=\"save-article-button save-article-button--default\" title=\"Save article\" data-article-id=\"a4f11391-6301-4856-8268-1e6b0c704cf2\" data-evt-skip-click=\"true\"\/><\/button><\/p>\n<div aria-describedby=\"popover-desc-popover-bookmark\" class=\"popover__content\" hidden=\"\" role=\"dialog\">\n<div class=\"popover__content__wrapper\">\n<div class=\"popover__content__text\" id=\"popover-desc-popover-bookmark\">\n<div class=\"bookmark__popover__content\">\n<p>You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<p><button class=\"popover__content__close\" data-evt-skip-click=\"true\" title=\"Close\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewbox=\"0 0 12 12\" class=\"icon--close\" height=\"12\" version=\"1.1\" width=\"12\"><polygon points=\"12 0.95 11.05 0 6 5.05 0.95 0 0 0.95 5.05 6 0 11.05 0.95 12 6 6.95 11.05 12 12 11.05 6.95 6\"\/><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">The Bank of Canada in Ottawa on July 12, 2023.<\/span> <span class=\"credit\">Photo by DAVE CHAN\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">In a report following its review of actions taken in response to the pandemic, the Bank of Canada committed to using\u00a0an exit condition for quantitative easing (QE)\u00a0in the event it\u2019s needed again, and to communicate more clearly the rationale behind the use of the program.<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>\u201cThe bank could use a QE exit condition more closely related to its monetary policy mandate and make this condition clear when introducing any future QE program,\u201d the report said. \u201cIdeally, the exit condition should be closely related to the outlook for inflation.\u201d<\/p>\n<\/section>\n<div 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class=\"identity-divider__line\"\/><span class=\"identity-divider__text\">or<\/span><span class=\"identity-divider__line\"\/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<footer class=\"identity-footer identity-screen__content m-x-0 p-x-0 col-sm-6 col-md-12\"\/><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">Another lesson learned from the pandemic is<strong>\u00a0<\/strong>to do a better job differentiating the purpose of its Government Bond Purchase Program. In March 2020, the central bank began the program to restore market function. In June 2020, the program\u2019s purpose switched to provide monetary stimulus to the economy.<\/p>\n<p>In October 2021, the bank ended its QE program, as the economic recovery was well underway. CPI stood at 4.4 per cent in September 2021 and would continue to climb into 2022. In the proceeding few months, the central bank would keep its balance sheet at the same level in what it called the \u201creinvestment phase.\u201d In March 2022, the bank began to raise interest rates and started the process of quantitative tightening.<\/p>\n<p>The Bank of Canada asked three outside experts to provide comments on its review: University of Calgary professor and economist Trevor Tombe, former Bank of Spain governor Pablo <span>Hern\u00e1ndez\u00a0<\/span>de Cos and former member of the Bank of England\u2019s Monetary Policy Committee and Massachusetts Institute of Technology professor Kristin Forbes.<\/p>\n<p>The experts questioned why the central bank did not consider moving interest rates below 0.25 per cent and into negative territory, as other central banks had done during the global financial crisis.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot14 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page fp-headlinenews background--primary-light-gradient\" aria-labelledby=\"FinancialPostTopStories9207156299183496325025590201548800\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 75w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 100w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 150w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 240w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 320w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 500w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 640w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 800w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 1024w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 1280w, https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg 1600w\" alt=\"Top Stories\" loading=\"lazy\" fifu-data-src=\"https:\/\/dcs-static.gprod.postmedia.digital\/17.8.0\/websites\/images\/newsletters\/icon-fp-topStories.svg\"\/><\/div>\n<div>\n<p>Top Stories<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Get the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_HeadlineNews\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. 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Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment9797364365426733492098839644995584\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>\u201cEven if rates below 25 basis points have significant disadvantages, are there situations where negative rates would be a more effective means of providing stimulus than QE?\u201d read the expert comments.<\/p>\n<p>The experts also say questions remain on the consequences that followed the timing of the stimulus pullback.<\/p>\n<p>\u201cIf the bank had provided less stimulus during the pandemic and\/or started removing stimulus earlier, would that have meaningfully reduced the increases in interest rates that were subsequently required?\u201d read the expert comments. \u201cOr would it have simply allowed the bank to raise rates at a slower, more traditional pace?\u201d<\/p>\n<p>Even though fiscal and monetary policy are independent, the experts suggest there should be better information sharing with fiscal authorities to calibrate the extent of the stimulus required.<\/p>\n<p>\u201cCould this have reduced the amount of assets that were subsequently purchased?\u201d read the expert comments. \u201cIt also would be helpful to more carefully evaluate the relationship between QE and fiscal policy in terms of the broader changes in the maturity structure of government debt.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment1052379438942149150329603973185536\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>During the pandemic, the central bank also used Extraordinary Forward Guidance (EFG), which signalled the policy rate was going to remain at its effective lower bound of 0.25 per cent for an extended period of time.<\/p>\n<p>In future, the central bank says it will make the EFG conditional on the outlook of inflation.<\/p>\n<section aria-labelledby=\"moreTopicLabel4828251854419666128629140578893824\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended from Editorial<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li data-evt-val=\"{\" control_fields=\"\" of=\"\" canada=\"\" expects=\"\" to=\"\" end=\"\" quantitative=\"\" tightening=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Bank of Canada deputy governor Toni Gravelle said quantitative tightening should wrap up in the first half of the year.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=80&sig=8mPIOi_i4JOU65IxNVDWSA\" fifu-data-src=\"https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=5&sig=topaBcuGqrw26HNZwV18Ag&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=96&strip=all&quality=80&sig=8mPIOi_i4JOU65IxNVDWSA, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=192&strip=all&quality=80&sig=7qXKJDns4cIyfofHx9bf-w 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/toni-gravelle.jpg?h=288&strip=all&quality=80&sig=H_7YIBSPaS9uPSY-bsuyzA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Bank of Canada expects to end quantitative tightening<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" jobs=\"\" data=\"\" mean=\"\" for=\"\" bank=\"\" of=\"\" canada=\"\" interest=\"\" rates=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Bank of Canada during its last rate announcement said it would slow the pace of cuts since inflation is now around its two per cent target and interest rates, currently at 3.25 per cent, are no longer in \" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=80&sig=UAbb7QK6NdACJneASLSvKw\" fifu-data-src=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=5&sig=gBp2xQ_fF0ZizM4lmyR5xQ&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=96&strip=all&quality=80&sig=UAbb7QK6NdACJneASLSvKw, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=192&strip=all&quality=80&sig=VLHDdWBvnt3YVOD-M_zx1g 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0111-mg-bankcanada.jpg?h=288&strip=all&quality=80&sig=mixZPuV34h5zRMtvMQ3Zyw 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" restrictive=\"\" territory.=\"\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">What jobs data mean for Bank of Canada, interest rates<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>Following the larger-than-expect rise in inflation following the pandemic, the central bank also committed to improving its forecasting models.<\/p>\n<p>\u201cBank models such as the Terms-of-Trade Economic Model include cost-based channels for inflation, but these models were underused during the pandemic,\u201d the report said. \u201cBank staff are presently considering ways to include a wider range of plausible economic scenarios into the quarterly projection exercise.\u201d<\/p>\n<p data-async=\"\"><em>\u2022 Email: jgowling@postmedia.com<\/em><\/p>\n<p data-async=\"\"><em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>Bank of Canada promises better quantitative easing communication<\/a><br \/>\n<br \/>2025-01-17 18:38:27<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links News Economy Report into central bank&#8217;s actions taken during the pandemic highlights lessons learned Published Jan 17, 2025 \u00a0\u2022\u00a0 3 minute read You can save this article&#8230;<\/p>\n","protected":false},"author":2,"featured_media":55170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/01\/0118-bc-boc.jpg?quality=90&strip=all&w=288&h=216&sig=pxDHR2IhM4azvB0zBaVl-w","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-55169","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/55169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=55169"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/55169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/55170"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=55169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=55169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=55169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}