Macklem Q&A: Potential output is still one percentage point below the pandemic

Comments from Macklem in response to questions:

• There will be capacity destruction from the pandemic
• BOC accelerating work on a digital currency
• Households and businesses have been especially resilient
• Further QE tapering will reflect our assessment of the economy
• We will be maintaining roughly the same composition of QE across the yield curve
• Asked about a hike in 2022, says that forward guidance is 'outcome based'
• Notes that forward guidance isn't calendar based
• We're looking for a full recovery
• Because we're going to hold rates at the lower bound until capacity is absorbed, the result is an overshoot in 2023 in inflation
• The message is that there is still a long way to go in the recovery