Comments from the Bank of Canada leader
- Recuperation phase to be slow and choppy
- Sees inflation well below 2% in the near-term
- Doesn't expect rebound to continue at the same pace
- QE program to be calibrated to provide needed stimulus
- Reiterates that QE will continue until the recovery well underway
- Economy will need extraordinary stimulus
The original sin of the BOC's QE program was framing it as a temporary measure to restore market functioning. The bank spent a decade trying to build trust on openness and transparency but it was a lie at the time and it looks worse now that they've moved the goalposts and said it's about stimulus.
USD/CAD has ticked to a marginal new high at 1.3177 after the headlines but there isn't much here to digest and stock markets are falling so that's the driver.
