Canada's central bank admitted last Thursday that "some of the monetary policy tools it is using to tackle the COVID-19 pandemic, such as quantitative easing (QE), can increase financial inequality" according to the story of the Financial Post. As a result, the bank said it was “looking more closely” at the problem. Wait seated for any kind of breakthrough in their thinking. Also read: Global money creation increased $ 15 trillion in 12 monthsThat said, the bank said its money-printing program was "increasing wealth by inflating asset values," a step in the right direction.
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The governor Tiff Macklem said last week “… these assets are not evenly distributed by society. As a result, QE may be increasing financial inequality. We will look closely at the QE results, here and elsewhere, and we will work to better understand their impact on financial inequality. ”The Bank of Canada had been buying $ 4 billion in government bonds a week, but recently changed to 3 billion. This makes him the first central bank to lower that figure, signaling that it could raise interest rates next year. The governor said in the same statement that the bank's benchmark rate would stay at 0.25% until inflation hits 2%. “Today, we are in the most accentuated economic cycle of our lives,” he concluded. .