Poloz Says Secular Stagnation May Curb Growth, Rates

Bank of Canada Governor Stephen Poloz said he can’t rule out an interest-rate cut if the economy worsens, following a speech where he blamed harsh winter weather for mainly sparking weaker-than-forecast growth.

“No, I cannot” rule out lowering the 1 percent policy rate, Poloz said at a press conference today in Halifax, Nova Scotia, while reiterating the bank’s neutral policy bias from its last decision March 5. “If the balance of risks were to shift so that the risks on the downside for inflation were increased, then we would need to reconsider.”