Bank of Canada lost C$522 million ($385.5 million) last quarter, its first quarterly loss since its foundation in 1935.

The central bank has been selling off its pandemic asset purchases since April. At the same time, it has raised the policy rate six times this year, from 0.25% to 3.75%. The increase in the policy rate means Bank of Canada has been spending more on interest payments on deposits.

Quantitative easing in 2020 and 2021 also increased the bank’s deposits, since the new money