Bank of Canada governor Poloz: Says level of GDP is higher than we thought it would be

Bank of Canada governor Poloz:

• Says level of GDP is higher than we thought it would be
• Central bank thinks there is plenty of capacity in the economy, a lot of room for it to grow
• Weaker oil price a downside risk to growth and inflation, but US. economy is showing encouraging signs
• The inflation profile in the near term will be pushed down by oil prices
• Says central bank thinks it still has about two years of above potential growth before it would use up slack in the economy
• Central bank has been concerned about household imbalances for a long time, makes Canada more vulnerable to external shocks
• Using interest rates to reduce financial stability risks can work, but should be the last line of defense

Headlines via Reuters