Senate Banking, Trade and Commerce committee requires special meeting with BOC’s Poloz to discuss trade uncertainties

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  • Canada: Upside surprise in inflation – TD Securities.
  • Canadian Senators have called for a special meeting with BOC’s Poloz to discuss trade uncertainties.

On the same day that markets got a sense that the Bank of Canada could be the central bank divergence trade for the rest of this year, considering the positive surprise beat fn the Consumer Price Index from Canada today, we get the news that, in fact, the Senators have called for a special meeting with BOC’s Poloz to discuss trade uncertainties. 

Citing global trade uncertainty and diplomatic tensions with China, the Senate’s Banking and Trade committee chair wants to hear from Bank of Canada boss Stephen Poloz and asked that a ‘special meeting’ be convened, according to news reports – The Post Millennial.

“We spent a fair time negotiating the new NAFTA, that’s not ratified so there’s uncertainty between us and the U.S., there’s tremendous uncertainty between us and China, us and India, Saudi Arabia… are all important markets or important potential markets,” Senator Doug Black told The Post Millennial.

“This going to have an impact on anyone who exports or desires to export, or import from those countries. So how is that going to be factored into (Bank of Canada’s) equation?”

Black said the Senate banking committee typically hears from the central bank’s governor in the spring and fall, but because Parliament is “out on extended break” in the lead to the October 21 election, “I thought it was timely that we hear from (Poloz) as early in the fall as we could.”

As several major economies’ central banks have eased their interest rates – United States’ Federal Reserve doing so for the first time in a decade, dropping from 2.5 percent to 2.25 percent on July 31 – Black said he is “interested in knowing the governor’s thought process around that.”

“Other countries are dealing with the challenges that they’re confronting by lowering their interest rates, and I have no idea whether that’s appropriate in Canada at this time or not, but I want to hear what the governor has to say,” Black said.

“The key challenge now, obviously, is the issue around trade, the issue around global tariffs and the issue around the thickening of borders, Canada’s borders, whether it’s with the US or others.”

As chair of the Senate Banking, Trade and Commerce committee, Black requires the consent of the Upper Chamber’s government representative, Senator Peter Harder, and Opposition rep Senator Larry Smith to hold the meeting … 

– The Post Millennial.

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