The Bank of Canada (BoC) Governor Stephen Poloz testified before the House of Commons Standing Committee on Finance in Ottawa on Tuesday. He noted that Canada's economy is "doing well" outside of the energy sector, supported by stronger U.S. demand for non-energy exports, the weaker Canadian dollar and interest rate cut in January.

Poloz expects that the Canadian economy starts to grow in the second quarter.

"Our outlook is for the positives to begin to reassert themselves during the second quarter, and to do so clearly in the second half of the year," the BoC governor said.

Poloz pointed out that impact of falling oil prices on Canada's economy is happening faster than the central bank expected.