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There will not be a snap back to normal from the coronavirus economic crisis, the incoming Bank of Canada governor Tiff Macklem said in a press conference on Friday.

Additional takeaways

“A seamless transition will be first priority.”

“There are disruptive effects from negative interest rates, comfortable with lower bound of rates at 0.25%.”

“Climate change is a major force in the economy and will affect prices.”

“Government and central bank have taken bold, unconventional actions in response to coronavirus crisis.”

“Message to Canadians is that central bank will provide essential liquidity to the system, will keep credit flowing.”

Market reaction

The USD/CAD pair jumped higher on these comments and was last seen rising 1.15% on a daily basis at 1.4100.