But we’ve been clear that, barring a dramatically different set of circumstances, we don’t think negative rates would be productive in a Canadian context. What about options for responding to the upside? The faster people get vaccinated and more people get back to work in contact-sensitive sectors, the more quickly the recovery could unfold. Such an outcome would be welcome news.
In that context, we may need to re-examine the amount of stimulus needed to achieve our inflation target. Earlier in my speech, I illustrated how we could withdraw stimulus from our QE program when the time comes. What we do know today is that Canada’s economic recovery will continue to require extraordinary monetary policy support.