BoC Governor Stephen Poloz said that “we are in an era where interest rates are probably going to stay low, for demographic reasons and economic growth reasons. I don’t know how low really but they’re just not going to be like where they were 20 years ago or 30 years ago”.
He’s also optimistic that Canada could be on track for the best-case recovery scenario. That is, growth might just shrink -15% in Q2 comparing with Q4. Nevertheless, overall inflation rate turned negative in April. Poloz added that “if it’s going to be underperforming, then we’re going to be easier for longer. That’s the essence of the (2%) target and that’s why it’s there.”