- BoC governor Poloz: Canadian economy is demonstrating resilience overall
Market news
30 October 2019
BoC governor Poloz: Canadian economy is demonstrating resilience overall
- Worsening global situation was primary issue for BoC deliberation
- Heightened uncertainty about future trade policy is hitting business investment
- BoC determined insurance cuts were not warranted
- Monetary policy can only do so much about these elements of shock
- Adjust to large shock in change in oil market takes a long time
- Excess supply probably isn't pervasive
- Our situation differs from others in that inflation is close to target
- BoC considered whether the downside risks were significant enough for an insurance cut but we determined that they were not worth the risks; but the situation will require monitoring
- We will be watching for any changes to fiscal policy at the Federal level now that election is behind us
- We're opening up a modest output gap
- Output gap isn't anything to ignore
- We will weigh the risks in their totality
- There are costs associated with an insurance cut
- Opening of output gap will have a minor inflation effect
- We are not an island, we are not immune from global developments but we are in a good place to cope
- There is substantial monetary stimulus in the system, that's been a factor for a long time
- CAD has been relatively stable against USD, but USD has been strong globally
- On languages change: It's best not to say the same thing every time
- A new NAFTA deal and China-US phase one deal would cause uncertainty to stop rising
- We definitely talked about what a rate cut would look like
- The best solution is to hold firm and watch things develop
- Says they didn't discuss rate cut in September because they didn't have updated forecasts
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