Speaks to CPI, tariffs and normalizing policy
- One time effects sent the CPI above the 2% target
- In the process of normalization
- On path of rate hikes
- Economy is more sensitive to rates because of the debt.
- The economies were not all correlated at the start of the recovery
- We are in the process of normalization, the economy is more sensitive to interest rate hikes
- Tarriffs are a major risk to the Canadian economy
- Canada economy is much more trade dependent
- tariffs causing companies to delay investment
- Believe can work out NAFTA issues
Poloz will be on a panel tomorrow. That will be the last time he will be speaking before the September meeting.
The probability of a rate hike is around 30% in September:
