Press conference off and away. Headlines to follow as they come out....USDCAD trades around 1.2772 at start of presser
Below are highlights of comments from BOC Poloz
- More is needed for self-sustaining Canada growth.
- Global economy may disappoint further
- Many factors in play in strengthening C$. Most of increased due to shifts in expectations about monetary policy in the US, Canada
- Recent data encouraging on balance but also quite variable
- Economy appears to be achieving average growth close to 2% in 1H of 2016
- Governing Council judge that budget actions will more than offset the negatives
- Looking beyond projection horizon, growth and output should pick up
- Global economy retains capacity to disappoint further
- Have not yet seen concrete evidence of higher investment
- Situation without fiscal shock would have looked worse than in January
- BOC would have had rate cut bias without fiscal measures
- Window of when will close output gap, highly subject to change
- Mix of policies we have today is more favorable one for economic growth and we had before
