In a prepared speech delivered at a mining conference in Iqaluit, Nunavut, Bank of Canada Governor Stephen Poloz said that the economic outlook continued to warrant an interest rate below the neutral range.
Key quotes (via Reuters)
- Recent data consistent with expectation that below-potential growth will be temporary.
- Economic data continue to give mixed picture and need to be carefully monitored.
- Global economy doing worse than expected a few months ago, Canada is feeling the effects.
- There are clear signs Canada is adjusting to challenges in global economy.
- Expects exports and investment to return to positive growth this year.
- Uncertainty about global trading system is hurting business confidence worldwide.
- Protectionism through import tariffs ends up being paid for by local consumers and companies.
- Trade barriers between Canadian provinces should be lowered; would add 0.2 of a percentage point to annual growth.
- Oil industry continues to adjust to low global prices, which weigh on investments, exports and wages.
- Trade pacts should help buffer some of the negative trade developments.
- Despite challenges faced by oil industry, energy products remain Canada’s no.1 export category.
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