Timothy Lane: Policies for the great global shutdown and beyond

Remarks (via videoconference) by Mr Timothy Lane, Deputy Governor of the Bank of Canada, to the CFA Society Winnipeg and Manitoba Association for Business Economics, Winnipeg, Manitoba, 20 May 2020.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Good afternoon. It is a pleasure to speak to you in these extraordinary times. Normally, the members of our Governing Council like to visit Canadians in their communities so that we can share what we know, answer your questions and hear your perspectives. I hope to do that again soon. Until then, we are making the most of the available technology to have those conversations.

The crisis presented by COVID-19 is truly global in scope, and its economic and financial impacts are unprecedented in severity and suddenness. I'd like to take this time to discuss what has happened to the economy and financial system, outline how the Bank of Canada has responded, and explain how we are providing the foundation for the recovery that will come next.

Concern about the pandemic began as early as January, but it was the shutdown in March that sparked a rapid and massive policy response in Canada. The crisis here, as in many countries, has demanded the use of measures we have never used before, on all fronts-fiscal, monetary and financial policy. These decisive measures have been aimed at stabilizing financial systems and helping ensure businesses and individuals alike have the means to survive in this exceptional time.