BoC's Poloz: Impact of tariffs, B20 lending guidelines to "figure prominently" in July rate decision
|Stephen S. Poloz, the Governor of the Bank of Canada, is now delivering his prepared speech titled 'Let Me Be Clear: From Transparency to Trust and Understanding' at Greater Victoria Chamber Of Commerce, with key highlights, via Reuters, found below.
- Impact of tariffs, B20 lending guidelines to "figure prominently" in July rate decision.
- Bank is working to incorporate effects of steel and aluminum tariffs, retaliatory measures, into projections.
- Bank is analyzing data to understand how new lending guidelines are affecting housing market, mortgage renewals.
- That is why we say that the bank is particularly data-dependent right now.
- These days there is a litany of things we simply do not know.
- Degree to which trade uncertainty is holding back business investment is unclear.
- Uncertain how sensitive the economy is to higher rates given accumulated household debt.
- Providing routine forward guidance would not enhance bank's credibility, rather it would put it at risk.
- Financial markets understood bank's message at the end of May.
- May shift in language represented increased confidence that economy was performing as expected, higher rates warranted.
- Seen signs that markets have become more responsive to data surprises, market signaling now stronger.
- Cannot mechanically follow the rate path provided by models because too much uncertainty.
- Market signals have "never been more valuable" to policy-makers given complex uncertainties we face today.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.