BoC’s Poloz: None of our monetary policy is in response to rate hikes by the Fed

After delivering the opening statement, Governor Stephen S. Poloz, and Senior Deputy Governor Carolyn A. Wilkins are now responding to questions from the press with key quotes, via Reuters, found below.

• BoC’s Wilkins: We’ve been surprised so far this year by higher level of exports, our forecasts are very prudent, there is a floor to exports.
• BoC’s Poloz: None of our monetary policy is in response to rate hikes by the U.S. Fed.
• BoC’s Poloz: The escalation of trade actions was “quite a part” of our discussions but agreed very early on it was not going to be basis of our decision.

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USD/CAD: remaining biased for re-test of 2018 highs – TDS.

Analysts at TD Securities explained that the Bank of Canada followed through on a widely expected 25 bp hike while the statement portrayed an upbeat tone, emphasizing the economic rotation into exports and business investment and repeating that higher rates will be warranted to keep inflation in check.

The Bank of Canada monetary  policy statement  from July meeting.

The Bank expects the global economy to grow by about 3 ¾ per cent in 2018 and 3 ½ per cent in 2019, in line with the April Monetary Policy Report (MPR). The US economy is proving stronger than expected, reinforcing market expectations of higher policy  rates  and pushing up the US dollar.  

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.”