Global central banks intensified their battle against slowing inflation as the risk of defeat mounts.
The Bank of Canada unexpectedly cut its main interest rate for the first time since 2009 on Wednesday in Ottawa, saying the oil-price shock will drag down inflation. The Bank of Japan expanded and extended a lending program, while two Bank of England policy makers dropped calls for higher interest rates.
With the European Central Bank poised on Thursday to announce it will buy government bonds for the first time, officials around the world are reinforcing or stepping up commitments to keep monetary policy loose. Behind the increased dovishness are fading price pressures, with the International Monetary Fund this week cutting its forecast for inflation in advanced nations almost in half.
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