Highlights of Bank of Canada Governor Stephen Poloz' press conference:

  • Must be mindful that further rapid CAD depreciation could push overall inflation higher relatively quickly
  • Deliberations began with a bias to ease
  • Most of oil shock built into Oct forecasts
  • Since Oct, the magnitude of the shock of lower oil prices has clearly grown
  • Encouraged by economy's resilience, flexibiltity
  • Sees two track economy with resources shrinking, other sectors picking up
  • Canadian economy can still achieve above-potential growth
  • Asked why he's optimistic, Poloz cites strong US economy and stimulus in the pipeline
  • 2016 GDP forecast is 1.4%, pending stimulus
  • Inflation expectations remain extremely well anchored

Related:

  • Bank of Canada leaves interest rates unchanged at 0.50%
  • Full monetary policy statement from the Bank of Canada's January 2016 meeting
  • The BOC's monetary policy report