Economics
Bank of Canada Says Rates Appropriate for Now, But Hikes Coming
- Governing council focused on recent slump in oil sector
- Underlying economy still requires rates to move higher: Poloz
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The Bank of Canada’s top officials say current interest rate levels remain “appropriate for the time being” in light of turmoil in oil markets, but they remain confident multiple increases will be needed in the future.
In a speech Thursday outlining some of the deliberations from Wednesday’s rate decision, Governor Stephen Poloz said the economy’s oil sector featured prominently in the governing council’s discussions, with slumping prices like to create a “painful adjustment” in Western Canada and have a “meaningful impact” on the overall economy. The central bank left the benchmark rate unchanged at 1.75 percent.