BoC Poloz: Likelihood of new fiscal stimulus was an ‘important consideration’

FXStreet (Córdoba) – Bank of Canada deliberations began with bias toward further monetary easing, but the likelihood of new fiscal stimulus was an “important consideration”, Governor Stephen Poloz said on Wednesday in a conference after deciding to keep monetary policy unchanged and rate steady at 0.5%.

Poloz said that the majority of the recent downside in oil was priced into their forecast for October and inflation expectations are “well anchored” at 2%. He added that further rapid depreciation of the Canadian dollar, could push CPI higher quickly.

The governing council focused mainly on implications of lower prices for oil and other commodities for Canada and monetary policy, according to Poloz. Other considerations included CAD decline, meaning non-resource sectors are receiving more stimulus than projected in October.

Bank of Canada deliberations began with bias toward further monetary easing, but the likelihood of new fiscal stimulus was an “important consideration”, Governor Stephen Poloz said on Wednesday in a conference after deciding to keep monetary policy unchanged and rate steady at 0.5%.

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