Bank of Canada chief Poloz says rates on hold until economic data improves
The Bank of Canada should keep its key interest rate on hold until economic data persuades it otherwise, central bank chief Stephen Poloz said on Tuesday, adding that he was not worried about calls from some international players to tighten policy.
On Tuesday, Bank of Canada chief Stephen Poloz responded to recent comments by Jim Flaherty, disagreeing with Flaherty's suggestion that 2014 would bring pressure to raise interest rates. It is the belief of Canada's central bank that keeping rates at their current level is prudent until economic conditions allow for an increase.
In an interview with CBC, Poloz said "For us, minimizing the risks of making a big mistake here is what we're trying to do, and that tells us that we should be holding rates where they are until the data flow changes our mind".
Poloz joined the Bank of Canada in the summer of 2013, and surprised Canadians when any language pointing to rising interest rates was left out of the central bank's announcements. Accounting for the average Canadian's current debt load, Poloz suggests rising rates would have a negative effect, and the impact has to be carefully considered.