BoC's Macklem: Ready to adjust short-term liquidity facilities as market conditions warrant

COVID-19 pandemic may accelerate some global forces that could make growth less inclusive, Bank of Canada Governor Tiff Macklem told a business audience by videoconference, per Reuters.

Additional takeaways

"Very uneven recessions tend to be longer and have a larger impact on the labor market; uneven outcomes for some can lead to poorer outcomes for all."

"Even if monetary policy cannot target specific sectors, we must make policy decisions that support lasting, broad-based growth."

"Inequality can make economies less resilient."

"Increasing use of digital technology can be expected to lead to broad economic gains but there are risks."

"In early days, lower- and middle-income workers are likely to bear much of the initial cost of displacement."

"Pandemic put us in a very deep hole and we still have a long climb ahead."

"Uncertainty around future course of the pandemic will continue to restrain economy, particularly in sectors that involve close contact."

"Lower global demand for oil means investment and hiring in the sector likely to remain weak and some projects may never come back on stream."

"With credit markets functioning well, demand for short-term liquidity facilities has declined; uptake on provincial and corporate bond-buying programs has been modest."

"Bank stands ready to adjust short-term liquidity facilities as market conditions warrant."

Market reaction

The USD/CAD pair edged slightly higher and was last seen gaining 0.27% on the day at 1.3176.