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BRIEF-Bank Of Canada's Poloz says monetary policy needs degree of accommodation

Published 2019-04-24, 11:28 a/m
© Reuters.  BRIEF-Bank Of Canada's Poloz says monetary policy needs degree of accommodation

April 24 (Reuters) - Bank of Canada Governor Stephen Poloz says:

* REMOVED REFERENCE TO NEED FOR INTEREST RATES TO RETURN INTO A NEUTRAL RANGE TO EMPHASIZE THAT WE WILL CONTINUE TO EVALUATE THE APPROPRIATE DEGREE OF MONETARY POLICY ACCOMMODATION AS NEW DATA ARRIVE

* MONETARY POLICY NEEDS TO MAINTAIN A DEGREE OF ACCOMMODATION SUFFICIENT TO OFFSET VARIOUS HEADWINDS UNTIL THE ECONOMIC OUTLOOK IMPROVES

* ECONOMY HAS SLOWED AND SOME EXCESS CAPACITY HAS RE-EMERGED, ALTHOUGH THIS EXCESS CAPACITY IS NOT GENERALIZED ACROSS THE ENTIRE ECONOMY

* IF RECENT SLOWDOWN IN ECONOMY PERSISTS, THEN WE WOULD FORESEE INFLATION TRENDING BELOW TARGET IN THE FUTURE; WE BELIEVE SLOWDOWN OF GROWTH TO A BELOW-POTENTIAL PACE WILL PROVE TO BE TEMPORARY

* LIMITED ACCESS TO MARKETS FOR CANADIAN CRUDE REMAINS A SIGNIFICANT SOURCE OF DRAG AND UNCERTAINTY

* DOUBTS ABOUT THE RATIFICATION OF NEW NORTH AMERICAN TRADE TREATY REMAIN A DOWNSIDE RISK TO OUR INVESTMENT OUTLOOK

* THERE IS GOOD REASON TO BELIEVE THAT THE ECONOMY WILL PICK UP IN THE SECOND HALF OF THE YEAR

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