BoC's Lane: Rates are still quite low relative to what we think of as neutral level

Eren Sengezer FXStreet

Timothy Lane, Deputy Governor of the Bank of Canada, is responding to questions, with key headlines (via Reuters) found below:

Each decision is a live decision
What we were seeing over the summer and two weeks ago, data were looking quite favorable for Canadian economy
GDP from q2 suggested growth was rather strong; that's what data dependence looks like
Where we are now, rates are still quite low relative to what we think of as neutral level
Households are way more indebted than they were a few years ago; we have to watch all these changes, along with c$
As c$ is strengthening, we're watching closely and will be taking that into account strongly
Household debt is an issue that's been continuing to play out, it's really linked to strength of housing markets
Consumer indebtedness is a big vulnerability for Canada's financial system, hopeful this will moderate over time

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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