Bank of Canada Governor Poloz has just begun his press conference following the rate decision. Selected quotes are shown below:
- US policy is unknown and difficult to forecast
- We’ve made some reasonable initial assumptions about US personal and corporate tax cuts
- Higher bond yields are crossing border into Canada and will hurt Canada
- Higher interest rates will act as a drag on Canadian economy and are at odds with the Canadian macro situation
The Q&A session has just begun:
Journalist: Could you give some more colour around the decision behind the rate decision. Was a rate discussed? Was a hike talked about?
SP: The only big event since our last meeting was the US election. Should any of the downside risks materialise and put our inflation target at risk then we would have room to maneouver. So yes, a rate cut remains on the table.
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