The Bank of Canada (BoC) Governor Stephen Poloz said in a speech on Tuesday that the Canadian economy will continue to recover in 2016.

""I think we've got all the ingredients of a recovery in place. It's being masked right now, to some degree, by the declines especially in the energy sector, but also in other resource areas," he said.

Poloz pointed out that the BoC could use negative interest rates in the event of a crisis.

"We don't need unconventional policies now, and we don't expect to use them. However, it's prudent to be prepared for every eventuality," the BoC governor noted.

"Regardless of the situation, the Bank will keep its primary focus on achieving the inflation target," he added.