Comments from Bank of Canada Governor Stephen Poloz in Toronto
- Reiterates that BOC will 'continue to be cautious' on rates
- Labor market slack poses downside risks to inflation forecast
- Sees potential early signs on firms offering higher wages
- Current policy setting remains 'quite stimulative'
- Upside inflation risks posed by economy running near capacity
- Mechanical approach would suggest BOC should already be less stimulative
- BOC is in data dependent mode
- Seeing signs of fundamental rotation away from housing to exports and investment
- Full text
There is something for everyone here but the main thrust is more optimistic and a bit more hawkish.
"The economy has made tremendous progress over the past year, and it is close to reaching its full potential. We are very encouraged by this, and we are growing increasingly confident that the economy will need less monetary stimulus over time," he said.
"Nonetheless" he said next.
