Bank of Canada (BoC) - significant monetary stimulus for well-functioning financial system
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Bank of Canada (BoC) - significant monetary stimulus for well-functioning financial system
The Canadian economy is going to need significant monetary stimulus throughout the recovery from the Covid-19 crisis to ensure it does not slide into deflation, Bank of Canada governor Stephen Poloz said in his final speech in charge. Poloz said the actions already taken by the central bank and the government as the following: weekly purchases of at least $5 billion of Government of Canada bonds to support the liquidity and efficiency of this foundational market, participation in the federal government’s treasury bill auctions, helping ensure the proper functioning of provincial debt markets by buying new provincial money market securities and provincial bonds in the secondary market. Besides, Bank of Canada (BoC) have established a program to buy Canada Mortgage Bonds—up to $500 million per week to support the healthy functioning of an important market for mortgage lending.
Bank of Canada governor Stephen Poloz stated about considerable uncertainty about the future course of the pandemic: "the Bank is prepared to augment the scale of any of its programs if needed to support market functioning. And if further monetary stimulus is required to meet our inflation targets, the Bank has tools available to deliver that stimulus."
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