BoC's Kozicki
- Repeats Macklem's line that if inflation continues to ease, it is reasonable to expect further rate cuts and that they are taking it one meeting at a time
- BOC is putting together an in-depth review of all exceptional actions taken during the pandemic
- The bar for US to use QE again is very high
- Unwinding of QE through QT has gone smoothly
None of this is a surprise but I fear that when the next supply shock comes, central banks won't do enough and it will be a growth crisis rather than an inflation one.
