Poloz Takes Rate Cuts Off Table on Improving Canadian Outlook

Bank of Canada Governor Stephen Poloz said a rate cut is no longer on the table amid signs of an improving economy, even as he continued to cast doubt on the sustainability of the rebound.

Canada’s central bank -- which has been very cautious in recent months on its assessment of the nation’s outlook -- predicted Wednesday the economy will return more quickly to full capacity, a key variable for policy makers since it’s the main driver of inflation. At a press conference after holding rates steady, Poloz said the central bank has become “decidedly neutral” and didn’t consider the possibility of a rate cut, as it had earlier this year.