The details are to come shortly this morning, but the title of Bank of Canada Governor’s speech today is, “Living with Lower for Longer,” and that might be all we need to know.
Governor Poloz following the Bank of Canada statement last week where the problems outlined for Canada’s economy stemmed from weak global demand in addition to an underperforming Canadian export sector largely because of Canada’s largest trading partner, the U.S.
A few questions remain of whether the Canadian central bank chief will downgrade his forecasts for economic growth, but also whether he’s consistent with what is the beginning of a dovish tone the Bank of Canada.
At the end of last week Deputy Governor Carolyn Wilkins addressing household imbalances and how the income and growth side of the equation are sluggish and will be slow to pick up. The take away from that was a call for moderation. We will see where Poloz stands shortly.