Bank of Canada Cuts Bond Purchases for Third Time, Bank of New Zealand Stops QE Cold-Turkey, Citing Housing Bubble in “Least Regrets Policy,” Following a Slew of other Central Banks

by Wolf Richter
Wolf Street

Why is the Fed so far behind the curve? Other central banks are now making room for “persistent” inflation.

Today, the world saw announcements by two central banks about reducing or ending asset purchases: By the Bank of Canada, its third reduction, and by the Bank of New Zealand which will stop them cold turkey in 10 days – following a slew of similar announcements by other central banks, while the Fed is still fiddling as inflation burns.

The Bank of Canada announced that it would reduce its purchases of Government of Canada bonds to C$2 billion a week, from C$3 billion a week, the third reduction of the same magnitude. It cited inflation, which rose 3.6% year-over-year, a pale imitation of the US CPI jump of 5.4%.

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