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.

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