The Bank of Canada is preparing to completely remove monetary stimulus from the economy, though Governor Stephen Poloz indicated Monday there remains uncertainty where exactly non-expansionary rates will end up. “All we know is that as we get closer to it, whatever it is, we’ll begin to see signs that we’re no longer stimulating demand,” Poloz said. “In fact, we know if we cross into the neutral zone we may see signs” that demand is being constrained. Poloz also said relatively high household debt levels may actually keep neutral rates lower than what would have been the case in the past. “There is increased sensitivity there that one needs to take into account,” Poloz said.

Source: thestar November 05, 2018 16:30 UTC