BOC Governor's Hawkish Speech Excites Investors! - Kakiforex.com - Financial Market Media No. 1 in the World BOC Governor's Hawkish Speech Excites Investors! BOC Governor's Hawkish Speech Excites Investors!
InstaForex

May 26, 2021

BOC Governor's Hawkish Speech Excites Investors!

 The positive statement by the Governor of the Central Bank of Canada (BOC), Tiff Macklem has helped the loonie dollar to re -erase the losses recorded against the US dollar.


The head of the central bank said that the action taken to reduce (tapering) government bond purchases recently, was the right move for the Canadian economy.


Last month, the BOC decided to slow easing in its weekly bond -buying program from C $ 4 billion to C $ 3 billion, making it the first central bank from the G7 to tighten policy.



Macklem later acknowledged that the economy still needed a large amount of monetary support, but he felt comfortable with the withdrawal of previous stimulus measures because of the resilience of the domestic economy, including a strong recovery from the second wave of Covid-19 earlier this year.


The optimism displayed by the BOC Governor continued to support the Canadian dollar to strengthen around its nearly six -year high against the weaker greenback dollar.


The strengthening of the commodity currency was also driven by rising crude oil prices supported by market confidence that a stronger economic recovery would drive global fuel demand.