Economics

Poloz Defends Need for Deep Rate Cut to Counter Virus Impact

  • Bank of Canada governor says restoring confidence is crucial
  • Praises ‘buffering’ effects of monetary policy against shock
BOC's Poloz Says G-7 Central Bank Coordination 'Extraordinarily High'
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For Bank of Canada Governor Stephen Poloz, it’s all about confidence.

After slashing interest rates by half a percentage point on Wednesday, Poloz defended the Bank of Canada from the criticism its most aggressive move in more than a decade may fuel already dangerously high household debt levels, while doing little to solve the underlying problems associated with the spread of the coronavirus.