Q&A with Bank of Canada governor Tiff Macklem
- BOC spent a good deal of time discussing stimulus amount
- QE changes will be a process not a switch
- BOC will be watching vaccine rollout closely
- We're expecting a very serious chop in growth
- We'll need a QE program for some time to come
- We expect the rebound in investment to come a little bit earlier
- Declines to indicate whether they discussed a cut to 10 bps but says it's one of the options if more stimulus needed
- On the margin, the stronger Canadian dollar is dampening exports
- The risk is further appreciation of the loonie. If we see more appreciation, that presents some downward risks to our assessment
- Most of recent appreciation in CAD is due to broad-based depreciation of USD
USD/CAD has bounced during the speech but it's part of a broader retracement in the dollar and risk trades.
