BoC's Macklem: No discussion on when to withdraw stimulus support

Newly-appointed Bank of Canada (BoC) governor Tiff Macklem said on Monday that he expects a long recovery period and noted that there has been no discussion on when the BoC would withdraw the stimulus support. 

Additional takeaways

"Bank sees spending on hospitality, air travel slower to come back from coronavirus pandemic."

"Recovery just starting, will be longer-term unanticipated effects."

"Canada's diverse economy is an asset."

"Canada's oil-producing regions facing double-whammy of coronavirus and low oil prices."

"Pandemic will have an ongoing impact on oil prices."

"Low oil prices could last longer than the coronavirus pandemic."

"Bank will be assessing the strength of the US' recovery very carefully and will be factoring that into its analysis, strong US recovery good for Canada."

"We don't know how much damage there is to the economy from the coronavirus pandemic."

"Expecting pretty good growth in GDP in third quarter."

"Very important for the BoC to understand the effect of climate change on the Canadian economy."

"Banks are a big part of the solution to the coronavirus crisis."

Market reaction

The USD/CAD pair largely ignored these comments and was last seen losing 0.45% on the day at 1.3541.