Macklem Q&A: QE adjustment is about maximizing effectiveness of program
Comments from Macklem and Wilkinson:
- We can get out of the way of the short end
- Scaring is a factor we're looking closely at
- Much of our balance sheet is under 2 years. We will move it out further
- Canadians should be confident rates to remain low
- We've been very consistent in our comments about negative rates
- Negative rates are in the toolkit. If the situation were to dramatically change, it is something we could consider. The bar would be very high.
- We didn't discuss negative rates today
So the negative rates questions aren't going to go away but it was somewhat definitive here that it's not in play at the moment but bad times will come again, either in the next few months or at some further point and you have to price in that risk.