Comments from BOC
- Downside risks were more than enough to offset worries about leverage and financial vulnerabilities to cut rates
- Canada is headed for at least another quarter of weak GDP and Q2 could be weak as well
- Reiterates that BOC ready to cut further if necessary
- At the very least the economy will be significantly disrupted in H1
- It is possible economy will snap back after health professionals have managed situation but outbreak and effects could be more persistent
- Business and consumer confidence will erode further, creating a more persistent slowdown
- Stresses from energy producing regions will spread into other parts of the country
- Many of the implications of virus lie beyond influence of monetary policy
