Reported 5 months ago
Canadian Imperial Bank of Commerce strategists are advising the Bank of Canada to either wrap up its quantitative tightening program or address distortions in short-term funding markets that are maintaining effective interest rates higher than necessary. Concerns have been raised about the scarcity of settlement balances, hoarding by financial institutions, inefficient short-term funding markets, and higher borrowing costs. If not addressed, these issues could potentially impact aggregate demand and economic growth, prompting the need for direct interventions by the central bank.
Source: YAHOO