BoC's Poloz: Recent economic data point clearly to moderation in growth in second half of year

Stephen S. Poloz, the Governor of the Bank of Canada, is delivering his comments, with key quotes, via Reuters, found below:

• Appropriate path for rates very difficult to know because of number of unknowns around inflation outlook
• Will watch financial market developments, including movements in longer-term interest rates and exchange rate
• Bank will not be mechanical in policy approach, economy may act differently than in previous cycles
• Bank could still be surprised in either direction; "we will continue to feel our way cautiously as we get closer to home"
• Temporary factors holding inflation down should dissipate in months ahead; recent c$ moves could affect timing
• Currencies can move for many reasons other than rate changes, including external factors
• Currency movements can affect inflation outlook, depending on cause, size, persistence
• Since July inflation forecast, core inflation has edged higher, as expected
• Recent economic data point clearly to moderation in growth in second half of year
• Confident economy has made significant progress, but cannot be certain of how far there is left to go
• Business investment will be key driver of economic growth, has been strong across the board over H1
• Issues bank will be watching include economic capacity, impact of technology on inflation, wage growth, household debt

Key notes:

USD/CAD upside faltered above 1.2400, attention to Poloz

The Canadian Dollar is extending the weekly downside vs. its American neighbor today, with USD/CAD hovering over the 1.2390/1.2400 band ahead of the speech by BoC’s S.Poloz.

CAD: Poloz and GDP data major event risks - ING

In view of analysts at ING, the focal point of Canadian markets in the week will be BoC Governor Poloz's speech and press briefing on Wednesday.

About Stephen Poloz

"Stephen S. Poloz was appointed Governor of the Bank of Canada, effective 3 June 2013, for a term of seven years. As Governor, he is also Chairman of the Board of Directors of the Bank and a member of the Board of Directors of the Bank for International Settlements (BIS). He currently chairs both the BIS Audit Committee and the Consultative Council for the Americas," as published on bankofcanada.ca.