BoC's Poloz speech: Will need to gauge carefully effects of higher rates on economy
Bank of Canada (BOC) Governor Stephen Poloz is giving his remarks on the monetary policy implementation, with the key quotes, via Reuters, found below:
- Governing council acknowledges economy may be more sensitive to higher rates than in past, given accumulation of household debt
- Will need to gauge carefully effects of higher rates on economy
- While lower rates contributed to greater household vulnerabilities, enhanced macroprudential policies helped mitigate these, will continue to do so
- As output growth continues to exceed potential, we expect companies to invest in additional capacity
- Monetary policy is not on a predetermined path; will remain highly data-dependent as we move forward
- One key indicator of progress will continue to be wage inflation, which has shown signs of pickup recently
Key notes:
BoC: Recent softness in inflation is temporary
In its statement, the Bank acknowledged recent softness in inflation but judged this to be temporary. Read more
USD/CAD in fresh 2017 lows post-BoC, near 1.2850
The Canadian Dollar is gathering further steam today, now dragging USD/CAD to fresh lows in the 1.2860/50 region. Read more
About Stephen Poloz
Stephen S. Poloz was appointed Governor of the Bank of Canada, effective 3 June 2013, for a term of seven years. As Governor, he is also Chairman of the Board of Directors of the Bank and a member of the Board of Directors of the Bank for International Settlements (BIS). He currently chairs both the BIS Audit Committee and the Consultative Council for the Americas.