Extraordinary measures taken by the Bank of Canada during the pandemic could be communicated more clearly, an internal review has found, including an explanation of how the actions will be wound down after a crisis has passed.
The report also noted that the bank significantly underestimated the strength and persistence of inflation in 2021 and early 2022, something governor Tiff Macklem has previously acknowledged.
Macklem said the review will help the central bank be better prepared and more effective should Canada face another similar economic crisis.
“The Bank of Canada is a learning institution, and we must take on board the lessons from this unprecedented experience,” Macklem said in a news release….