Poloz: BOC comments in Q&A Feb 24
Bank of Canada Governor Stephen Poloz spoke in a press conference after delivering a speech that sent the Canadian dollar higher.
- Forward guidance creates more volatility
- Desire for precision from the market comes from forward guidance but it can be a trap
- A healthy two-way trade on rates is what we need now
- Net effects of oil shock not yet know.
- Just because rate announcement doesn't have MPR, doesn't mean we're without tools (that's a bit dovish)
- Economy and exports have underperformed expectations in the past two years
- Canadian dollar reacts to fundamentals
- Past few weeks of data flow has been 'some up and some down' (doesn't sound like a cut)
- Employment growth has been disappointingly slow
- Remains optimistic that underlying fundamentals are stronger and improving
- Labor market has capacity, has potential for a couple years of growth without hitting contraints
"The downside risk insurance from the interest rate cut buys us some time to see how the economy actually responds," Poloz said in the speech.
