Economic Progress Report speech headlines from the BOC's Lane:
- Economy moving as expected
- US tax changes may dim Canada investment attractiveness
- Recent investment figures were encouraging
- Some accommodation likely needed to keep economy on target
- Uncertainty over NAFTA and trade will need to be watched
- Working assumption at BOC is no change in existing trade deals but uncertainty affecting business investment
- US economic picture still has upside potential; stronger US business investment and household spending would benefit Canada
- BOC is looking at wage growth, which is slower than expected
- Will watch developments on household debt
- Too soon to say how higher rates and mortgage rules will affect economy
- We have started to see wages pick up
- Full text
The headlines are a bit more upbeat than the BOC statement.
"In our deliberations for yesterday's decision, we took stock of recent developments related to these issues. As job creation has absorbed slack in the labour market, we have started to see wages pick up. With respect to the impact of higher interest rates on housing markets and the economy, although it is still too early to make a full assessment, we have seen a deceleration in household borrowing. And while it's also too early to tell how much additional potential output in the economy is being created, last week's strong investment figures are encouraging. We will be providing a fuller assessment of potential growth, as well as of the neutral interest rate, in our April Monetary Policy Report.," he said.
That almost sounds like he's saying the BOC won't move in April.
