But first, the bank will conduct its own review — which will include an external assessment by central banking experts — to deliver a verdict on what role the bond-buying and other actions played in the run-up in inflation, which peaked at 8.1 per cent in June 2022.
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In a speech on June 13, Deputy Governor Sharon Kozicki cited bank research that showed quantitative easing added as much as three per cent to the country’s gross domestic product at its peak. She didn’t mention another finding of the report — the emergency bond purchases added 1.8 percentage points to inflation.
The bank’s position is that supply disruptions and higher commodity prices were the primary contributors to inflation, and Kozicki said policymakers see “very little correlation” between the increase in the country’s money supply and the inflation surge.
