The head of the Bank of Canada, Macklem, stressed that the QE program increases inequality in society by pumping primarily asset prices. In his opinion, QE does not distribute benefits equally, and increased inflation affects primarily the poorest and those with fixed incomes. In his opinion, we are currently living in the most unequal economic cycle of our time in terms of society. In addition, it points out that a full recovery is possible when everyone can say that the pandemic is behind us and that companies are willing to invest to expand production capacity.
As one can see, there is no clear direction among central bankers. It would seem that everyone would insist that inflation is not a problem and that current policies are required to recover from the crisis. Despite hawkish comments on the QE program, CAD remains weak, although this is recently due to weak oil and a stronger US dollar.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
USDCAD remains high despite the hawkish comments of the BoC Governor. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
