BOC Macklem: Monetary stimulus will be needed for considerable period
Bank of Canada Macklem
- monetary stimulus will be needed for considerable period
- will continue to do its part in protracted recovery
- inflation wasn't threatening to take off before pandemic
- Covid accelerated structural change to labor market
- sees shared responsibility to reduce labor scarring
- BOC role in supporting digitalization, automation
- complete Canada recovery still a long way off
- expecting a solid rebound in the media months ahead.
- More confident in sustained strong growth through H2 and in 2 2022
- it will be sometime before candidacies a complete economic recovery
- we can expect some near-term bounce back in employment now that tightest Covid 19 curbs have been lifted
- many Canadians will likely continue to work remotely
- pandemic has most likely permanently advanced trend toward e-commerce shopping. Fewer retail workers may be needed in the future
- some lost jobs will not return and many low-wage jobs have a high potential being automated
- governments could help me challenges of changing job market by boosting access to childcare to allow more women to join the workforce
Macklem is is speaking to a virtual audience at the Alberta Chamber of Commerce.
His comments are specific to Canada but also specific to those parts of the world suffering from Covid.
Looking at the hourly chart of the USDCAD, the pair has been confined between support at 1.25798 -1.25838 and resistance between 1.26467 to 1.26528. The 100 hour MA is at 1.26477. The current price trades just above the 1.2600 level.