Bank of Canada in risk management mode with stagflation on the table, Poloz says
News Source : Financial Post
News Summary
- The Bank of Canada cut its policy rate by 25 basis points in October, bringing the rate down to 2.25 per cent.
- Expectations currently lean towards a pause at the central bank’s next rate decision in December.
- After contracting in the second quarter, the Canadian economy is expected to grow by 0.5 per cent in the third quarter.
- Poloz said monetary policy cannot unwind all the impacts of a trade war, including sectors that are hard-hit by U.S. tariffs.
In the face of downside risks to economic growth and upside risks to inflation, the Bank of Canada is more likely to do very little in terms of rate moves, according to former Bank of Canada governor [+4254 chars]
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