Highlights of the press conference with BOC governor Poloz and senior deputy Wilkins:
- Heightened uncertainty about future trade policy is hitting business investment
- BOC determined insurance cuts were not warranted
- Monetary policy can only do so much about these elements of shock
- Canadian economy is demonstrating resilience overall
- Adjust to large shock in change in oil market takes a long time
- Excess supply probably isn't pervasive
- Our situation differs from others in that inflation is close to target
- The BOC considered whether the downside risks were significant enough for an insurance cut but we determined that they were not worth the risks; but the situation will require monitoring
- We will be watching for any changes to fiscal policy at the Federal level now that election is behind us
This is dovish once again. The BOC is/was definitely thinking about easing. I don't think they want to have rates above the US.
