Macklem: CAD has been a bit stronger than assumed in July

Author: Adam Button | Category: Central Banks

Comments from the Bank of Canada Governor:

BOC Macklem
  • CAD stronger than assumed despite low oil prices
  • BOC will keep providing stimulus
  • We are still more than 700K jobs below pre-pandemic
  • Peak job losses in 2009 recession were about 425K
  • Purchases of longer-term bonds are more effective
  • The very rapid phase of the reopening phase is over
  • We expect 4th quarter growth to be just barely positive
  • The pandemic is reducing investment and is likely to cause long-lasting damage to jobs
  • We've marked down growth potential to 1% out to 2023
  • It's possible that spending could be stronger than expected if consumers unwind savings
  • We see the risks are forecasts to be roughly balanced but we're particularly focused on downside risks
There is nothing surprising in the initial comments. He will take questions next.

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