BoC's Poloz speech: Will need to gauge carefully effects of higher rates on economy

Eren Sengezer FXStreet

Bank of Canada (BOC) Governor Stephen Poloz is giving his remarks on the monetary policy implementation, with the key quotes, via Reuters, found below:

Governing council acknowledges economy may be more sensitive to higher rates than in past, given accumulation of household debt
Will need to gauge carefully effects of higher rates on economy
While lower rates contributed to greater household vulnerabilities, enhanced macroprudential policies helped mitigate these, will continue to do so
As output growth continues to exceed potential, we expect companies to invest in additional capacity
Monetary policy is not on a predetermined path; will remain highly data-dependent as we move forward
One key indicator of progress will continue to be wage inflation, which has shown signs of pickup recently

Key notes:

BoC: Recent softness in inflation is temporary

In its statement, the Bank acknowledged recent softness in inflation but judged this to be temporary. Read more

USD/CAD in fresh 2017 lows post-BoC, near 1.2850

The Canadian Dollar is gathering further steam today, now dragging USD/CAD to fresh lows in the 1.2860/50 region. Read more

About Stephen Poloz

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.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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