Following the Bank of Canada’s decision to raise the overnight rate target to 1.75%, Governor Stephen S. Poloz, and Senior Deputy Governor Carolyn A. Wilkins are delivering their remarks on the monetary policy outlook with key quotes, via Reuters, found below.
- Monetary policy remains stimulative.
- The policy rate is still negative in real terms
- Discussion focused on retuning policy rate to neutral.
- The protectionist trade actions, particularly those involving the United States and China, were also top of mind for us as they are still weighing on the global outlook.
- You may have noticed that we have not used the word “gradual” to describe the pace of policy adjustments.
- This is to avoid the impression that we are following a preordained, mechanical policy path.
- The appropriate pace for interest rate increases will depend on Governing Council’s assessment at each fixed announcement date of how the outlook for inflation and related risks are evolving.
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“The global economic outlook remains solid. The US economy is especially robust and is expected to moderate over the projection horizon, as forecast in the Bank’s July Monetary Policy Report (MPR),” the BoC said in its statement.
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.”
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