Poloz spoke with Reuters:

  • Ability to take interest rates negative shifts the argument on inflation targeting
  • BOC has no ability to influence oil prices
  • Canadian dollar follows oil "like a train track"

More like a train wreck.

Poloz is trying to give the Canadian dollar one last punch in the kidneys before the holidays.

Update (more headlines crossing)

  • Asked if he is optimistic about Canada's economic recovery, says "cautiously so"

Going through the MPR, Q4 "looking softer" than Q3 isn't any kind of surprise to the BOC. They forecast Q3 at 2.5% and Q4 at 1.5% (annualized pace).