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.
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USDCAD remains high despite the hawkish comments of the BoC Governor. Source: xStation5
