Following the Bank of Canada's decision to raise the overnight rate target to 1.5%, Governor Stephen S. Poloz, and Senior Deputy Governor Carolyn A. Wilkins are delivering their remarks on the monetary policy outlook with key quotes, via Reuters, found below.
- In case of further trade tariffs, the economy would slow, inflation would rise, exchange rate would depreciate, adding to price pressures on the Canadian economy.
- Implications for interest rates of a trade escalation "would depend on the circumstances."
- Important to remember that our economy is in a good place, near capacity, strong labor market, inflation on target.
- Monetary policy by itself could not undo the long-term damage to jobs and income that could result from rising protectionism.
USD/CAD tumbles to lows near 1.3080 post-BoC.
The Canadian Dollar is sharply appreciating vs. its American neighbor on Wednesday, dragging USD/CAD to fresh lows in sub-1.3100 levels.
The Bank of Canada monetary policy statement from July meeting.
The Bank expects the global economy to grow by about 3 ¾ per cent in 2018 and 3 ½ per cent in 2019, in line with the April Monetary Policy Report (MPR). The US economy is proving stronger than expected, reinforcing market expectations of higher policy rates and pushing up the US dollar.
About Stephen Poloz (via bankofcanada.ca)
"Stephen S. Poloz was appointed Governor of the Bank of Canada, effective 3 June 2013, for a term of seven years. As Governor, he is also Chairman of the Board of Directors of the Bank and a member of the Board of Directors of the Bank for International Settlements (BIS). He currently chairs both the BIS Audit Committee and the Consultative Council for the Americas."
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