Canada’s top central banker says monetary stimulus on the scale that the country is seeing now must ultimately reach the average Canadian to help an economic recovery from the COVID-19 crisis.
In a speech Thursday afternoon, Bank of Canada governor Stephen Poloz says a recovery from the current economic crisis requires monetary policy to play a significant role once public health restrictions ease.
But for the recovery to really take off, stimulus actions need to “reach the ultimate borrower,” Poloz says. In the text of his speech posted online, Poloz points to how longer-term mortgage rates were “sticky” after the Bank of Canada lowered its target overnight rate “because banks were still funding themselves at relatively steep rates in bond