Comments from the BOC deputy:
- No comments on future monetary policy moves
- Cautious household spending will likely continue until a vaccine becomes available
- Fiscal measures should continue to buffer income losses and support for household spending
- Sees two phases: Reopening and recuperation
- Reopening phase will be rapid, recuperation will be prolonged and uneven
- More persistent disruptions in the job market could slow recovery
- The longer income losses persist, the higher the risk of possible insolvencies; situation in energy-producing regions particularly notable because they were already under financial stress
- Less immigration may cause a slower recovery
These comments are along the same lines as something I wrote yesterday: So much depends on the duration of COVID-19.
