Highlights of Bank of Canada Governor Stephen Poloz' press conference:
- Must be mindful that further rapid CAD depreciation could push overall inflation higher relatively quickly
- Deliberations began with a bias to ease
- Most of oil shock built into Oct forecasts
- Since Oct, the magnitude of the shock of lower oil prices has clearly grown
- Encouraged by economy's resilience, flexibiltity
- Sees two track economy with resources shrinking, other sectors picking up
- Canadian economy can still achieve above-potential growth
- Asked why he's optimistic, Poloz cites strong US economy and stimulus in the pipeline
- 2016 GDP forecast is 1.4%, pending stimulus
- Inflation expectations remain extremely well anchored
Related:
- Bank of Canada leaves interest rates unchanged at 0.50%
- Full monetary policy statement from the Bank of Canada's January 2016 meeting
- The BOC's monetary policy report
