Bank of Canada surprises with dovish tilt after holding rates
(Adds Poloz comment on unconventional tools, paragraphs 9 10)
By Andrea Hopkins and Leah canada goose uk black friday Schnurr
OTTAWA, Oct 19 (Reuters) The Bank of Canada cut its growth Canada Goose Outlet forecast on Wednesday and said it actively discussed adding more monetary stimulus to speed buy canada goose jacket cheap up the nation economic recovery, surprising financial markets by shifting tone dramatically after its initial rate decision.
Citing a looming slowdown in Canada long uk canada goose housing boom and a weaker outlook for exports, Bank of Canada Goose Online Canada Governor Stephen Poloz said the central uk canada goose outlet bank had considered Cheap Canada Goose Parka easing monetary canada goose uk outlet policy but was held back by https://www.cagooseclearance.com global uncertainty.
Poloz revealed the stimulus discussion in his opening statement to reporters more than an hour after publication of the rate decision, Canada Goose Parka wrong footing financial markets that were not expecting the dovish shift.
you look at the press release at 10, that had a very balanced tone and you would have said day over, nothing to see canada goose clearance sale here. And then you canada goose factory sale get to the press conference opening statement and it almost like buy canada goose jacket a big bombshell, said Emanuella Enenajor, Canada economist at Bank of America Merrill Lynch.
David Watt, chief economist at HSBC Canada, canada goose black friday sale said there was a disconnect between what the bank said early in the day Canada Goose Jackets and what was communicated to reporters canadian goose jacket later in the news conference.
markets obviously got two different versions, two different interpretations, of what was said, said Watt. would like canada goose uk shop to have more cheap Canada Goose consistency.
Poloz has upset market players with unexpected moves in the past, including a shock January canada goose coats 2015 rate cut.
It was the second time Canada Goose sale in six months the canada goose coats on sale central bank admitted it had considered adding more stimulus to the economy to canada goose store counter persistent disappointments in growth and exports.
Poloz later Canada Goose Coats On Sale told a Senate committee that the bank did not have a lot of traditional tools left to boost the economy, but could use unconventional measures like forward guidance, asset purchases, quantitative easing and negative canada goose clearance interest rates.
remain in our toolkit and if that what the situation calls for, canada goose that where we would need to go, he Canada Goose online said. Federal Reserve expected to hike cheap canada goose uk further.
Asked about the move to reveal the rate cut discussion only after the rate decision was released, a spokeswoman for the central bank said Poloz open statement to reporters is designed to fill the gap between the quarterly monetary policy report and press release announcing the rate decision.
opening statement. (offers) insight into which issues were really on the table during the deliberations and how those issues influenced the decision, spokeswoman Josianne Menard said in an email.
As expected, the bank held its overnight rate at 0.5 percent, where it has been since July 2015, even as it trimmed GDP forecasts, saying downward pressure on inflation will continue while economic slack persists. election and business investment, the Canadian housing market, and the commodity cycle kept the bank from adding stimulus. (Reporting by Andrea Hopkins and Leah Schnurr; Editing by Frances Kerry, Bernard Orr).