Deputy Governor Lawrence Schembri explains how household spending has changed because of COVID-19. He says the Bank expects the recovery to have two phases, with an initial bounceback from reopening giving way to a recuperation period of gradual and bumpy growth.
Watch Deputy Governor Schembri speak to the Greater Saskatoon Chamber of Commerce via webcast.
Households are spending money differently
Recent data indicate that a recovery has begun and that a more severe outcome has been averted, thanks to an extraordinary set of actions taken by the federal and provincial governments and the Bank of Canada.
The uncertainty around this recuperation stage is extraordinary and points toward a recovery that will be gradual and long-lasting as this uncertainty slowly dissipates and household confidence is restored.