BOC's Poloz: Reiterates that downside risks seen in Sept have crystalized
Poloz speaks in press conference
- Satisfied that in a relatively tricky situation, October's statement communicated the downside risks we had highlighted had crystalized
- Comments around last rate decision offered clarity
- Recovery still lacks company creation
- Some of Canada's export weakness remains unexplained
- New mortgage rules ensure quality will be higher than might otherwise have been
This skews more dovish than some of the pricing in the OIS market, which is showing less than a 20% chance of a rate cut for the next four months.