Sunday , August 14 2022

In Canada, the route to a very incredible neutral rate


MONTREAL, February 21 (Reuters) – Canada's interest rates need to go to a neutral zone, but the path to do it is now "very uncertain," said Stephen Poloz, Governor of the Bank of Canada. his reluctance to continue with the rate travel cycle that started in 2017.

In front of a crowd of businessmen in Montreal, Poloz stressed that any future rate changes would be a function of economic data evolution and he remembered that the central bank had a "gradual" approach at its rate speeds. due to the uncertain effect on households who are very owed.

"We believe we will refer our key rate in a neutral zone in due course. But the way to reach (s) is very uncertain," he said.

As expected by its unchanged financial policy on January 9, Canada Bank had suggested that the increase in interest rates could be more gradual than expected to start but the statements of its Thursday governor appear more careful.

The central bank has raised its key rate five times since July 2017 and still speaks in December the possibility of accelerating the increase in rates according to the evolution of economic indicators.

Its next financial policy meeting will be held on March 6. (Allison Lampert, Véronique Tison for a French service)

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