BoC: Governor Poloz’s remarks struck an upbeat tone - TDS

Research Team at TDS, notes that the BoC Gov Poloz’s remarks in Toronto struck an upbeat tone, highlighting that the services sector points to a full economic recovery.

Key Quotes

“While the BoC has said that the adjustment has been more gradual than the Bank would have liked, excess capacity is expected to be absorbed around mid-2018 and inflation will converge on 2%. On balance hard to say his comments provide a ringing endorsement for additional stimulus. While Gov Poloz declined to speculate on the impact of US policy on BoC deliberations during a Bloomberg interview yesterday, he did say in Q&A that there has been very little additional information regarding uncertainties that were mentioned in Oct, suggesting no pressing need to act, despite the Bank having considered cutting rates in Oct.”