Reducing its share of the bond market could transmit monetary policy more effectively to the economy, as borrowing costs tend to be determined by longer-term rates rather than the very short-term rate set by the BoC. The BoC is expected to announce its first half-point interest-rate increase in over 20 years, as the central bank accelerates its tightening timeline to tackle an overheating economy, analysts said. The decline for the loonie came as the safe-haven U.S. dollar rose against a basket of major currencies, while global shares fell for a fourth day as investors weighed the inflation outlook.