Following the Bank of Canada’s decision to raise the overnight rate target to 1.5%, 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.
- In case of further trade tariffs, the economy would slow, inflation would rise, exchange rate would depreciate, adding to price pressures on the Canadian economy.
- Implications for interest rates of a trade escalation “would depend on the circumstances.”
- Important to remember that our economy is in a good place, near capacity, strong labor market, inflation on target.
- Monetary policy by itself could not undo the long-term damage to jobs and income that could result from rising protectionism.
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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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