Comments from the new BOC leader
When the Bank of Canada launched QE, then-leader Poloz went to great lengths to emphasize that it was about market functioning. That goalpost has certainly been moved.
- Not all the jobs lost will come back
- Job growth expected to re-accelerate
- July MPR will show scenarios rather than forecasts
- Reiterates policy will be at the effective lower bound
- Ready to ramp up liquidity programs if they are needed
- Further actions to be calbrated to achieve target
- Repeats that 0.25% is the lower bound for rates
- Market functioning has improved considerably
There has been little reaction in the Canadian dollar on the comments. This is the first time that Macklem has really addressed monetary policy.