Tim Lane, Deputy Governor of the Bank of Canada
- We didn't say we have to be on hold until we have more clarity, but lack of clarity has dampening effect on outlook
- Look at composition of growth, final domestic demand has been growing solidly through 2017
- The news on steel has changed a lot in last few days, it's still a fluid situation, we're not in a situation of calling all clear
- Still a significant degree of uncertainty around the trade situation
- During rate decision discussion, trade uncertainty is a factor that is definitely a risk to outlook, but one of a number of factors in making a decision
Headlines via Reuters
That 'lack of clarity' Lane is referring to is on trade ... specifically the current tariff issues.
Lane need not be too concerned, I'm reliably informed the Prime Minister is offering thoughts and prayers
That should fix it.
More from Lane:
- one of the reasons we are very cautious is to make sure we are adequately taking stock of what rates are doing to households
- we haven't done full analysis to calibrate whether slowdown with credit is more or less than we should have expected, but broadly in direction we expected, kind of confirms overall narrative
- Over time rates will need to be higher, we are not on a pre-set path to higher interest rates
- Every decision is a live decision
