The Bank of Canada deputy gov, Beaudry: CAD is very important for our outlook
The Bank of Canada deputy governor Paul Beaudry asked if bank is actively considering lowering the effective lower bound, says this is a potential option
He says nothing has been decided, and;
Lowering rates is one of the tools we can use, it's one thing we are considering and thinking a bit about;
Asked how concerned he is about strong c$, says exchange rate is very important for our outlook;
Strong C$ is one element of many we are looking at;
Even if monetary policy works with a lag, there is no problem about thinking we can add more stimulus if needed;
We have not looked in detail about how we would implement yield curve controls;
QE operations have a certain risk, there is implicitly a chance we could lose or gain money, says that type of risk is relatively small compared to the benefits.
BoC's Beaudry: BoC could cut rates further without going into negative territory
USD/CAD eases back from multi-year lows just above 1.2700
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
