In a scheduled speech delivered on Thursday, the Bank of Canada (BOC) Governor Stephen Poloz said that the resilience of the Canadian economy could be seriously tested by coronavirus, depending on the severity and duration of its effects. Additional comments Reiterates that bank is ready to cut rates further if needed to support growth and keep inflation on target. Management demands a prompt and sizable monetary policy response to larger shocks to ensure economy remains well-anchored. Bank felt that downside risks to economy were more than sufficient to outweigh continuing concern about financial vulnerabilities. Global economy will at the very least be significantly disrupted by coronavirus in h1 2020. Is possible global economy will snap back after health professionals have managed situation, but outbreak and effects could be more persistent. Canada is headed for at least another quarter of very weak growth, Q2 could also be hit. Real risk that business and consumer confidence will erode further, creating a more persistent slowdown. Stresses from lower commodity prices will spread from energy-producing regions into other parts of Canada. Declining consumer confidence naturally leads to reduced activity in housing market. In this context, lower rates will help stabilize housing market rather than contribute to froth. Many of the implications of coronavirus lie beyond influence of monetary policy. Monetary policy can contribute by buffering effects of outbreak on consumer and business confidence; this contribution can be particularly powerful when shock is global, and response is coordinated. Canadian labor market is in good health overall, continues to be source of resilience for economy. Federal government could boost health of labor market by helping people deal with risks of relocation or make it easier for skilled workers to recertify in another province. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next 10-year US T-bond yield at new record lows, financial-heavy DJIA erases more than 3% FX Street 3 years In a scheduled speech delivered on Thursday, the Bank of Canada (BOC) Governor Stephen Poloz said that the resilience of the Canadian economy could be seriously tested by coronavirus, depending on the severity and duration of its effects. Additional comments Reiterates that bank is ready to cut rates further if needed to support growth and keep inflation on target. Management demands a prompt and sizable monetary policy response to larger shocks to ensure economy remains well-anchored. Bank felt that downside risks to economy were more than sufficient to outweigh continuing concern about financial vulnerabilities. Global economy will at the very… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.