Outgoing BoC Governor Stephen Poloz said that to bring inflation back to target, “it is necessary to stabilize the economy and then return economic output and employment to their potential”. He also told the Senate’s finance committee, “If further monetary stimulus is required to meet our inflation targets, the bank has tools available to deliver that stimulus”. But negative rates would only be needed in extreme conditions.
It’s Poloz’s last public appearance as Governor before retiring next week. Former Senior Deputy Governor and Dean of the Rotman School of Management Tiff Macklem will take up the job then.
