Poloz takes questions in St John's, Newfoundland
- Poloz was asked about tax changes the gov't is floating
- Household debt is our number one risk
- With a high-level of household debt, Canada is not well prepared for any shock
- We have to be cautious that the same level of hikes would have more of an effect
- We've had a period of high labor force participation, now baby boomers are retiring
- About 1.5% is trend growth for Canada with current paradigm, but things like inter-provincial free trade could boost it 0.2-0.3 pp
- Youth unemployment is what keeps me up at night, that can leave scars
He made the analogy that the economy is like a tree with a crack. It looks healthy, and could even mend itself, but if there is a storm it could be blown over.
