Comments from Bank of Canada deputy Timothy Lane
- Fiscal policy must do much of the heavy lifting
- Sees 'sizeable' rise in Fed and provincial funding needs
- Official CPI data may understand real consumer inflation
- Likely to be downside pressure on inflation from pandemic
- Repeats Q2 GDP decline could be 15-30%
- Sees some reasons for optimism, layoffs are concentrated in service sector, where during normal times labor mobility is high
- There is a risk that domestic and global recovery could occur in fits and starts
There's been no move in the Canadian dollar on this. The Fed minutes were released at the same time and there's been no reaction there either.
