BoC’s Poloz: Rates Can Stay Low

Bank of Canada Governor Stephen Poloz said the central bank has scope to keep interest rates near historic lows even if employment picks up.

Speaking in an interview Aug. 22 on the sidelines of Federal Reserve Bank’s annual symposium in Jackson Hole, Wyoming, Poloz said persistent slack in the country’s labor market and a tendency toward part-time job creation has restrained income growth in the world’s 11th-largest economy.

The trend of employment growth “has been around 1 percent for some time,” Poloz said. “We’re confident there’s quite a bit of room to grow and, particularly since our interest rates are already at 1 percent, we figure we’ve got time to watch this unfold.”


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