BoC's Poloz: Impact of tariffs, B20 lending guidelines to "figure prominently" in July rate decision

Stephen S. Poloz, the Governor of the Bank of Canada, is now delivering his prepared speech titled 'Let Me Be Clear: From Transparency to Trust and Understanding' at Greater Victoria Chamber Of Commerce, with key highlights, via Reuters, found below.

• Impact of tariffs, B20 lending guidelines to "figure prominently" in July rate decision.
• Bank is working to incorporate effects of steel and aluminum tariffs, retaliatory measures, into projections.
• Bank is analyzing data to understand how new lending guidelines are affecting housing market, mortgage renewals.
• That is why we say that the bank is particularly data-dependent right now.
• These days there is a litany of things we simply do not know.
• Degree to which trade uncertainty is holding back business investment is unclear.
• Uncertain how sensitive the economy is to higher rates given accumulated household debt.
• Providing routine forward guidance would not enhance bank's credibility, rather it would put it at risk.
• Financial markets understood bank's message at the end of May.
• May shift in language represented increased confidence that economy was performing as expected, higher rates warranted.
• Seen signs that markets have become more responsive to data surprises, market signaling now stronger.
• Cannot mechanically follow the rate path provided by models because too much uncertainty.
• Market signals have "never been more valuable" to policy-makers given complex uncertainties we face today.