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
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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.
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