Comments from Bank of Canada governor Stephen Poloz 18 April 2018

  • Rates may need to stay below the neutral range
  • Canada has made considerable progress in last 12 months
  • Some progress has been made on the key issues being watched closely by Governing Council, particularly the dynamics of inflation and wage growth.
  • Governing Council will remain cautious with respect to future policy adjustments, guided by incoming data
  • Assuming our forecast remains on track, it is Governing Council’s view that interest rates will need to move higher over time to keep inflation on target
  • This is an intensely data dependent process of risk management
  • Rates may need to stay below the neutral range until various forces have dissipated
  • Increase in inflation has made us quite comfortable with our outlook
  • There are questions on wages still
  • By law of gravity, rates will move higher in time (I guess gravity works differently in Canada)
  • The pace of rate hikes is a considerable question mark
  • StatsCan will start issuing monthly service trade data later this year

Poloz finishes and USDCAD trades at 1.2636.

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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