To help prepare for the next shock, he said making a Canada Emergency Response Benefit (CERB)-like support mechanism part of the government’s toolkit could be helpful, as per the Canadian Press.
Citing Canada’s negative overall inflation rate in April, Poloz said that the central bank will “be easier for longer” in line with its 2% inflation-targeting policy.
He also remarked on the damage the COVID-19 pandemic could inflict on the economy, saying that some comments have been “a little too dire.”
Attributing the current decline in economic growth to shutdowns rather than behavioural factors, he maintained that production should revive quickly after business closures link to the outbreak are lifted.
He estimated that the country remains on pace to meet the BoC’s best-case scenario wherein the second quarter would see a 15% reduction in economic growth compared to Q4 2019.