Market news
05.12.2019, 13:19

BoC's Deputy Governor Lane: There is no reason for BoC to move in step with U.S. Federal Reserve when it comes to rate moves

  • Says global economic uncertainty likely to persist even if U.S. and China reach a trade deal
  • Global uncertainty is likely to have a lasting effect: questions remain about whether market pricing fully reflects risks
  • The tone of developments in recent weeks gives bank more confidence in its October outlook for growth and inflation
  • Notable economic strengths and on-target inflation mean Canada is resilient but it is not immune
  • Damaging effects of trade conflict are only partially offset by easier monetary policy
  • Recent data augur well for households financial situation and future spending, although consumer confidence has been softening
  • Heavy household borrowing creates vulnerabilities that could amplify any negative shock to the economy; lowering rates further could make vulnerabilities worse
  • Canada's employment wage growth data suggest labor market is continuing to tighten
  • In hindsight moves in Canada and U.S. toward balance budgets starting in 2010 were premature


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