With inflation soaring at this point in time, it’s easy to forget that it fell to almost zero in the early days of the pandemic, GDP declined sharply, and millions of Canadians were out of work.
This required BoC action to prevent a sharp decline in spending and investment by households and businesses, and to boost financial markets.
“A cautious and gradual approach may be needed when entering uncertain territory – but as the pandemic has portrayed, there are times when policy-makers must act boldly,” the deputy governor said. said.
learning for the future
Lane noted the lessons learned over the past two years, ensuring that the BOC can take similar bold action when circumstances demand.
“While uncertainty cannot be completely eliminated, taking bold risks at the start of payments. And being clear in our communications gave Canadians confidence in our ability to manage a situation like no other, “They said.