Poloz speech: Monetary policy is playing a backup role

Following the Bank of Canada's decision to lower its policy rate by 50 basis points to 0.25% on Friday, Governor Stephen S. Poloz and Senior Deputy Governor Carolyn A. Wilkins are delivering their remarks on the policy outlook and responding to questions from the press in a teleconference.

Key takeaways

Poloz: "There was a disconnect in overnight markets and bank's key rate which is one reason it made sense to cut now."

Wilkins: "Unlikely at this point that the housing market would be fueled by banks' actions."

Poloz: "Central banks do not have a lot of room to manoeuvre so fiscal policy is better equipped to handle shocks."

Poloz: "Monetary policy is playing a backup role."

Poloz: "It will keep extraordinary purchase programs in place until the economic recovery is well underway."

Poloz: "Focus is now on period after the current crisis."

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."