Too early to end monetary stimulus, says Bank of Canada
It’s still too soon to start talking about an exit from monetary stimulus, but the Bank of Canada will adjust its quantitative easing program as needed to support the next phase of the recovery, the head of Canada’s central bank said on Thursday.
That “calibrating” of its QE program means that going forward the Bank will assess what to buy, as well as how much to buy – and “it could be more, it could be less,” Governor Tiff Macklem told reporters after a speech to a business audience.
While the recovery from the COVID-19 crisis has so far been strong, there is still a long way to go and the pace of the recovery is expected to start to slow, Macklem said.
“Let me underline, it’s really very premature to start talking about exit. That’s some ways off and that’s really reflected in our decision yesterday to continue our QE program at the current pace,” he said.
The Bank of Canada held its key interest rate at 0.25 per cent on Wednesday and continued its QE program of large-scale asset purchases.