The Bank of Canada (BoC) could cut rates further without going into the negative territory if the economy goes into a persistent downturn, BoC Deputy Governor Paul Beaudry said on Thursday, per Reuters. Additional takeaways “Other options to combat a major downturn include expanding its quantitative easing program or using yield-curve targeting.” “Negative rates would not be productive in a Canadian context, barring a dramatically different set of circumstances.” “We will not overuse QE and overshoot our inflation target; exit target for qe program is tied to our inflation goals.” “We will have three options to leave the QE program; first is to reinvest any proceeds from maturing assets into new ones, maintaining level of stimulus.” “The second option is to allow maturing assets to roll off balance sheet; third option is to actively sell the assets.” “Our choice between the different options would depend on our outlook for the evolution of inflation.” “Recent positive news on vaccines represents upside risk to the outlook, could lead bank to reevaluate amount of stimulus that is needed.” “The second wave of COVID-19 in Canada will weigh on Q1 economic activity and represents important risk further out if situation becomes much worse.” “Overall level of economic activity remains largely on track with our expectations.” “We have yet to fully analyze all new information to shift our assessment in oct monetary policy report that slack will not be absorbed until some time in 2023.” Market reaction The USD/CAD pair showed no immediate reaction to these comments and was last seen gaining 0.63% on a daily basis at 1.2732. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin miners go into selling spree while BTC price is held by weak support FX Street 2 years The Bank of Canada (BoC) could cut rates further without going into the negative territory if the economy goes into a persistent downturn, BoC Deputy Governor Paul Beaudry said on Thursday, per Reuters. Additional takeaways "Other options to combat a major downturn include expanding its quantitative easing program or using yield-curve targeting." "Negative rates would not be productive in a Canadian context, barring a dramatically different set of circumstances." "We will not overuse QE and overshoot our inflation target; exit target for qe program is tied to our inflation goals." "We will have three options to leave the QE program;… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.