BoC’s Macklem: Our forward guidance is not calendar-based, it is outcome-based

FX

Bank of Canada (BoC) Governor Tiff Macklem is delivering his remarks following the bank’s decision to leave the policy rate unchanged while lowering the weekly net purchases of Canadian government bonds to a target of C$3 billion from C$4 billion.

Key quotes

“Larger than forecast government stimulus package doesn’t affect bank’s overall forecasts.”

“Some government measures, such as national daycare, will stimulate supply as much as demand and have less impact on inflation projection.”

“Adjustment of QE program reflects what we’ve seen in the economy to date, households and businesses have been impressively resilient.”

“What we do with interest rates when targets have been met is to be decided, it’s not mechanical.”

“Our extraordinary forward guidance is not calendar-based, it is outcome-based.”

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