- BoC's Deputy Governor Lane: There is no reason for BoC to move in step with U.S. Federal Reserve when it comes to rate moves
Market news
5 December 2019
BoC's Deputy Governor Lane: There is no reason for BoC to move in step with U.S. Federal Reserve when it comes to rate moves
- Says global economic uncertainty likely to persist even if U.S. and China reach a trade deal
- Global uncertainty is likely to have a lasting effect: questions remain about whether market pricing fully reflects risks
- The tone of developments in recent weeks gives bank more confidence in its October outlook for growth and inflation
- Notable economic strengths and on-target inflation mean Canada is resilient but it is not immune
- Damaging effects of trade conflict are only partially offset by easier monetary policy
- Recent data augur well for households financial situation and future spending, although consumer confidence has been softening
- Heavy household borrowing creates vulnerabilities that could amplify any negative shock to the economy; lowering rates further could make vulnerabilities worse
- Canada's employment wage growth data suggest labor market is continuing to tighten
- In hindsight moves in Canada and U.S. toward balance budgets starting in 2010 were premature
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