- Analytics
- News and Tools
- Market News
- BoC's governor Macklem: Further adjustments to our QE program will continue to be gradual
BoC's governor Macklem: Further adjustments to our QE program will continue to be gradual
- My message today is twofold - of increased confidence and of continued attention
- With cases falling, rapid progress on vaccinations and easing containment measures, Governing Council is increasingly confident that growth will rebound strongly as economy once again reopens, and this time growth will be more durable
- There is continued need for careful attention to the dynamics of the recovery and inflation
- Globally, economic outlook remains highly dependent on course of the virus and new variants are a concern. In Canada, we still have some way to go to a complete recovery
- Process of reopening the economy won’t be entirely smooth
- As we reopen the economy, we expect to see some volatility, and we will continue to pay close attention to the progress of recovery and to evolution of inflation
- CAD is close to where it was in April relative to USD, but it is slightly stronger against a broader basket of currencies
- Consumption is expected to continue to lead the recovery
- Employment should continue to rebound over next few months as reopening process continues; we still have more than 500,000 jobs to recoup
- Supply bottlenecks are creating sharper movement in prices that is pushing inflation temporarily higher, and these supply issues now look more important than previously thought
- Inflation is now projected to be somewhat above the target band through 2021
- Temporary effects are forecast to dissipate near the end of this year and inflation is forecast to ease back toward 2 percent in 2022
- We expect the factors pushing up inflation to be temporary, but their persistence and magnitude are uncertain, and we will be watching them closely
- We decided to adjust QE program to a target of $2 billion weekly purchases of Government of Canada bonds, down from a target of $3 billion a week; this adjustment reflects continued progress towards recovery and the Bank’s increased confidence in the strength of the Canadian economic outlook
- Decisions regarding further adjustments to the pace of net bond purchases will be guided by Governing Council’s ongoing assessment of the strength and durability of the recovery
- If economy evolves broadly in line with our outlook, then over time it won’t need as much QE
- Further adjustments to our QE program will continue to be gradual, and we will be deliberate both in our assessment of incoming data and in communication of our analysis
- We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
