Cautious comment from the BOC Deputy
- QE adjustment has been appropriate given Canadian conditions
- If CAD appreciation goes too far it would start to be a challenge to exporters
There’s some caution in Lane’s comment but I’d be careful in reading too much into that. In another exchange, he was asked about a recent slowing in weekly QE purchases but he said it was technical “if we’re going to scale down how much QE we are doing, we will tell you” he said.
The next BOC decision is July 14 and it will be an interesting one. There’s a soft consensus there will be some tapering but estimates vary and the BOC hasn’t offered any clues this week. There are no upcoming speeches scheduled.