The Bank of Canada today decided to leave the overnight lending rate unchanged at 4.5% and signalled a continuation of quantitative tightening.

The Bank’s decision continues along its policy of quantitative tightening, albeit with a dovish tone this time around, signaling that it may be nearing the end of its historic rate-hike cycle.

A central bank is a financial institution that manages the production and distribution of money and credit for a state, or a group of states. Central banks oversee its state’s commercial banks and maintain a monopoly on the money supply of the state.

The Bank of Canada has increased the target overnight rate by 50 basis points to 3.75% as it continues its policy of quantitative tightening.

The Bank of Canada (BOC) maintained its aggressive stance towards inflation as it raised interest rates by 75 basis points (bps). This is the fourth consecutive “outsized” hike, bringing its target overnight rate to 3.25%.

On Friday, August 26, the annual Jackson Hole Symposium was held in Wyoming. Each year the Federal Reserve-sponsored conference focuses on critical economic issues facing the world economy. This year, the focus was on Fed Chair Jerome Powell and the Federal Reserve's stance on using interest rates to battle inflation going forward. Comments made by the Fed not only pertain to the US, but many central bankers and finance ministers globally also look to the US for guidance