|

BoC's Poloz: Current level of rates appropriate for the 'time being'

Below are some of the key highlights from the text of a scheduled speech by the BoC Governor Stephen Poloz at the Chartered Financial Analyst Society Breakfast Seminar in Toronto.

   •  The pace of increases remains 'decidedly data dependent'.
   •  Repeats that neutral is 'in the neighbourhood' of 2.50-3.50% (1.75% is the current rate).
   •  Continues to judge rates need to rise into neutral range.
   •  Signing USMCA will likely support investment rebound.
   •  Credit growth and strong demand show housing market is stabilizing.
   •  WCS discount has narrowed but spreading to light crude.
   •  Painful adjustment already developing for Western Canada.
   •  Data released since Oct MPR "have been on the disappointing side".
   •  The economy has less momentum heading into Q4 than expected.
   •  Much of BOC's deliberations were focused on oil, prices well below MPR projections and demand could be hit by moderating global growth and trade tensions.
   •  The main risk to the outlook is trade tensions between the US and other nations, says containing inflation risks would be paramount in an outright trade war.
   •  Many highly-indebted countries will face difficult adjustment as mortgages reset and rates go up.

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated. 

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected. 

Gold consolidates the rebound below $5,000, US data eyed

Gold price consolidates the previous rebound below $5,000 in the Asian session on Thursday. The precious metal recovered on Wednesday amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims,  Pending Home Sales data, and the Fedspeak later on Thursday. 

Bitcoin approaches a critical zone: Bear pennant projects $56,000

Based on the most recent analyses from February 2026, the short answer is that it is highly unlikely that Bitcoin will reach $100,000 this month.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.