The global economy looks set for continued slow growth thanks to structural reasons and low interest rates are likely to persist as well, Bank of Canada Governor Stephen Poloz argued in his prepared remarks delivered before the Empire Club of Canada in Toronto on Thursday.
Poloz refrained from commenting on the near-term policy outlook and the USD/CAD pair was last seen trading at 1.3175, adding only 0.04% on the day.
"Rates are likely to fluctuate around historically low levels, cites structural factors such as slowing population growth and risks to productivity growth."
"One consequence of persistently low rates is that household indebtedness may continue to rise; household indebtedness is Canada's most important financial vulnerability."
"It is highly uncertain how combination of low rates, rising debt and technological change will hit households, companies and governments."
"Although risk of surprise outbreak in global inflation is low, mix of high household and government debt as well as populist politics holds inflationary potential for some nations."
"Perhaps recent tendency for inflation to run below target in many countries has fostered degree of complacency."
"More likely, inflation risk is being overwhelmed by deep structural forces limiting economic growth, keeping even long-term rates low."
"High levels of financial vulnerabilities could make it harder to hit inflation target, bank will continue to embed financial stability linkages in monetary policy framework."
"We are studying whether it makes sense to issue digital version of our bank notes."
"So far we have not seen signs of higher productivity in economic data caused by new technologies, possibly because this is hard to capture."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.