BoC Macklem: Will stop buying gov't bonds when recovery is well underway

The Bank of Canada governor Tiff Macklem says the bank has committed to stop buying gov't bonds when recovery is well underway, most likely before inflation rate hits 2% target, as reported by Reuters.

He also says that it's possible that consumer spending could be greater than expected if there is a vaccine and economy could recover faster than forecast.

Wilkins commented as well and says the 2% inflation target remains very relevant.

Additional comments...

There are other things we can do, we do have the capacity to do more things if needed.

Ample potential to scale up qe if that were needed.

Its possible that consumer spending could be greater than expected if there is a vaccine and economy could recover faster than forecast

Premature to provide insight on mandate review.

Negative rates would not be terribly helpful at present.

There has been no reaction in the market and the loonie trades at 1.3020, up slightly on the day by 0.11%.