BoC Poloz: hopeful as ever, but still playing on the safe side

Bank of Canada (BoC) Governor Poloz gave statements during a Q&A today regarding interest rates and the BoC's stance moving forward.

Key highlights

Sees the need for monetary stimulus fading.

Too much debt could expose vulnerability.

Things are currently fine, but as interest rates move higher debt could become too expensive to service.

Economy can still continue to grow.

Poloz believes there is still untapped potential in the economy.

Wage growth has been picking up, expects this to continue.

Wants to see the youth, women participation rates move higher.

Concerned about household debt, transition dynamics.

Expects the neutral rate is about 3%.

BoC has no control over the neutral rate.

It's still too soon to return to the neutral rate.

BoC has no specific timeline for returning to the 3% mark.

More notes after speaking with reporters:

Income growth is the key to financial stability.

Sustainability comes from a strengthening economy, as well as nominal GDP growth.

Expects sentiment to improve after the current NAFTA issue gets resolved.

Canada is just beginning to enter the "sweet spot" of economic growth.