Press conference after BOC decision

The press conference is beginning. The USDCAD is at 1.3481 at the start of the press conference.

  • Slowdown will prove to be temporary
  • Removed reference to need for interest rates to return into a neutral range to emphasize that we will continue to evaluate the appropriate degree of monetary policy accommodation as new data arrive
  • Needs to maintain a degree of God accommodation sufficient to offset various ad wins until the economic outlook improves
  • Economy has slowed in some excess capacity has reemerged, although this excess capacity is not generalize across the entire economy
  • Lmited access to markets for Canadian crude remains a significant source of drag and uncertainty
  • Doubts about the ratification of new North American trade treaty remains a downside risk to our investment outlook
  • Good reason to believe that the economy will pick up in the 2nd half of the year
  • growth drivers are still operating in the economy

Wilkins:

  • labor income growth is expected to be healthy