Poloz speech: Monetary policy is playing a backup role

Eren Sengezer FXStreet

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."

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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