Poloz Sees Potential to Fuel Canada Expansion Without Inflation

Bank of Canada Governor Stephen Poloz said the nation’s economy carries plenty of untapped potential that allows policy makers to prolong an expansion without fueling inflation.

Poloz said the nation is at the “sweet spot” of the business cycle where growing demand is actually generating new capacity as companies invest to meet sales, a process he said the Bank of Canada has an “obligation” to nurture. He also estimated there are currently about half a million Canadians who can still be drawn into the labor force under stronger economic conditions.