Poloz is appearing on a panel in Washington:
- Repeats that drop in oil prices very significant shock for Canada
- Repeats that oil price drop is front-loaded, one-time shock
- Averse impact of oil price will be gone by second half
- Cost cutting by oil companies changing supply dynamics
- Very optimistic about the US economy
Poloz has been upbeat lately, to the point where he's downright bipo
lar. I can't imagine him saying anything more positive today than he's said recently. With oil prices on a skid (down $1 in the past hour) the risks for USD/CAD are higher.
I don't understand the thinking that the averse impact is over by the second half. It's a repeated drag on the economy because investment and hiring in the oil patch slows, export values drop and the spinoffs subside.
Poloz earlier this month.
