Bank of Canada’s Advisory Committee Outraged Over Cancellation of Inflation-Adjusted Bonds

The Bank of Canada’s Advisory Committee on the Debt Market is angry about the government’s decision to cancel inflation-adjusted bonds. These bonds are designed to help protect investors from inflation and are therefore a valuable tool for managing debt. The committee believes that this decision will have a negative impact on the country’s debt market.

Debt Market and Inflation

The global debt market has grown exponentially in recent years, with total global debt reaching $247 trillion in 2018. This is an increase of over $70 trillion since the start of the decade. At the same time, inflation has been on the rise in many countries, with the average inflation rate for advanced economies increasing from 1.2% in 2010 to 2.1% in 2018. In emerging markets, inflation has risen even more significantly, from 6.4% to 8%. This combination of rising debt levels and higher inflation rates can have a significant impact on economic growth and stability, making it important for governments and businesses to monitor these trends closely.
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