Bank of Canada could resume hikes if data proves slowdown temporary Poloz

first_img advertisement Stephen Poloz, Governor of the Bank of Canada.THE CANADIAN PRESS/Sean Kilpatrick Reuters Sponsored By: More What you need to know about passing the family cottage to the next generation Comment Share this storyBank of Canada could resume hikes if data proves slowdown temporary: Poloz Tumblr Pinterest Google+ LinkedIn Email Featured Stories Redditcenter_img Bank of Canada could resume hikes if data proves slowdown temporary: Poloz The Governor warns that U.S. President Donald Trump’s protectionist trade policies could provoke a new global recession The Bank of Canada could start hiking rates again “sometime down the road,” although such a move will depend on whether upcoming economic data backs up its assessment that a current slowdown is only a temporary detour, the central bank’s head said on Thursday.The Bank of Canada has raised interest rates five times since July 2017, although it has stayed on the sidelines in recent decisions as global trade concerns, the slumping oil sector and a weaker housing sector have weighed on the Canadian economy.The bank again held rates steady on Wednesday but took a more dovish stance than in recent releases, removing wording around the need for “future hikes,” while lowering its growth forecasts for 2019.But in a televised interview with Maclean’s magazine on Thursday, Governor Stephen Poloz said the central bank believed the slowdown would be temporary, lasting “a couple of quarters,” and implied the worst was already over. Brent could hit $100 before year-end, but it won’t end well for global economy, analyst says Bank of Canada holds rate, drops bias for future hikes as economy stalls William Watson: Trumpians consider mucking with monetary policy just when it’s working beautifully “What we have to do then is wait and see if the data proves to us that we were right about that,” he said. “Assuming we are, then sometime down the road we’ll be able to say: ‘OK, now it’s time to start normalizing again,’ but that remains to be seen.”Related Stories:Bank of Canada expected to part ways with central bankers around the world todayBank of Canada content to leave rates unchanged, frets about trade war damageHigh-flying loonie could give Bank of Canada pause in this week’s interest rate decisionHe repeated that any move would be data-dependent.The Bank of Canada estimates its neutral range is between 2.25 and 3.25 per cent. The overnight interest rate is currently at 1.75 per cent.Poloz also said there was nothing to signal that Canada was on the verge of recession, but when asked if U.S. President Donald Trump’s protectionist trade policies could provoke a new global recession, he said: “Certainly.”“When you think about the gains in income and living standards that have been created by trade liberalization in a postwar period, to erase even a portion of those would be to risk causing a recession globally,” Poloz said.© Thomson Reuters 2019 3 Comments Facebook ← Previous Next → Recommended For YouGroping for new tools, central banks look at Japan’s yield controlsChina shares rise, yuan stronger after Q2 GDP meets expectationsAP FACT CHECK: Trump wrong about Dems, census, citizenshipChina June crude oil throughput rises to record on new plantsJapan PM Abe’s ruling bloc set for solid upper house win – polls April 26, 20197:55 AM EDT Filed under News Economy Twitter Join the conversation →last_img read more