Beaudry has been speaking in a virtual speech to a provincial regulator about the housing market. According to the deputy governor, the pandemic has intensified two of the main financial vulnerabilities faced by the Canadian economy; housing market imbalances and high levels of household debt.
BoC Governor Tiff Macklem, in an FT oped cited by Reuters, said further stimulus via QE is no longer needed. Macklem caveated that, given he believes that slack does still remain in the economy, considerable monetary stimulus remains necessary.
Bank of Canada Governor Lawrence Schembri said on Tuesday that the relationship between labour market conditions and inflation has weakened and become more difficult to measure, thus making it harder to know when economic slack has been absorbed.
The BoC left rates on hold, but they ended QE and brought rate guidance forward to the middle quarter of 2022 from sometime in the second half of 2022. This move was supportive for the CAD and should continue to be over the medium term as long as oil prices don’t collapse.
So, QE ended (so far in Canada, but the Fed will follow suit) and the termination plunged gold prices in Canadian dollars. Will this repeat globally?
Today's BoC monetary policy announcement was much more hawkish than expected. The BoC ended its quantitative easing program with immediate effect, and also signaled that policy interest rates could start rising earlier than previously expected.
The Bank of Canada is the nation's central bank. Its principal role is "to promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act. The Bank’s four main areas of responsibility are:
The official website, on Twitter and YouTube
Tiff Macklem was born in Montréal, Quebec, in 1961. He was appointed Governor of the Bank of Canada, effective 3 June 2020, for a seven-year term. He is the tenth governor of the Bank of Canada. As Governor, he is also Chairman of the Board of Directors of the Bank for International Settlements (BIS). He currently chairs both, the BIS Audit Committee and the Consultative Council for the Americas.
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
