When financial tensions ease as the pandemic runs its course, these extra liquidity demands will dissipate, and the Bank’s balance sheet expansion can reverse over time. The Bank stands ready to augment the scale of any of its programs should market conditions warrant it.
Governing Council agreed that the combination of aggressive fiscal action and monetary stimulus will create the best possible foundation for the recovery period. Before concluding, let me point out that this MPR is unique in one other respect. This is the 25th anniversary of the first MPR, published under Governor Gordon Thiessen’s leadership in May 1995.