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Bank of Canada governor says low interest rates have done their job
Stephen Poloz, Governor of the Bank of Canada, holds a press conference at the National Press Theatre in Ottawa on Thursday, June 8, 2017. (Sean Kilpatrick / THE CANADIAN PRESS)
OTTAWA - The Bank of Canada is sending out more signals that it's moving closer to a hike in its benchmark interest rate as the economy continues to strengthen.
Governor Stephen Poloz told the CBC in an interview broadcast Tuesday that rate cuts introduced by the bank amid the oil-price slump have done their job.
The bank reduced its trend-setting rate twice in 2015 to the very low level of 0.5 per cent to help the economy as it struggled with the effects of the oil-price shock.
Poloz's remarks come a day after the bank's second-highest ranking official indicated the governing council is assessing whether the considerable stimulus from the low rates is still required.
Senior deputy governor Carolyn Wilkins said in recent months the economy has registered impressive, broad-based gains not seen since before the oil-price collapse nearly three years ago.
Analysts say these types of comments suggest the bank is beginning to assess when, not if, the bank might introduce its first rate increase in nearly seven years.