Tag: pandemic

Targeting inflation during the pandemic

Tools The third ingredient are the tools we use to keep demand and supply balanced, and inflation on target. Our main tool is the policy interest rate. When the pandemic hit Canada in March, we lowered the interest rate to 0.25 percent. As businesses reopen, low interest rates will help support spending and borrowing, so…

Spending patterns in a pandemic

The second phase: a slow and gradual recuperation After the initial phase, the speed, strength and breadth of recovery are harder to predict. The economy will be affected by what happens with the virus, jobs and incomes, and confidence. Job growth will be uneven. The hardest-hit sectors—such as restaurants and retail—typically have high turnover, which…