29 Apr 2015
Negative impact of the oil shock happening faster, but not larger than anticipated – BOC Poloz
FXStreet (Mumbai) - Bank of Canada (BOC) Governor Stephen Poloz told the Standing Committee on Finance on Tuesday, that as the effects of lower oil prices work their way through the Canadian economy, the negatives are hitting the nation faster, but their impact is not larger than anticipated.
Key Quotes:
"The main risk to our outlook is the size and duration of the negative impact of the oil shock, weighed against the positive forces that are building in the non-energy sector,"
"Our outlook is for the positives to begin to reassert themselves during the second quarter, and to do so clearly in the second half of the year. The interest rate cut in January and the lower Canadian dollar are working to speed up the transition.”
"The impact of the oil price shock is happening faster than initially expected; it does not appear to be larger than we anticipated in January,"
"The negative effects of lower oil prices hit some sectors of the economy right away,"
"The various positives - more exports because of a stronger US economy and a lower Canadian dollar, and more consumption spending as households spend less on fuel - will arrive only gradually, and are of uncertain size."
Key Quotes:
"The main risk to our outlook is the size and duration of the negative impact of the oil shock, weighed against the positive forces that are building in the non-energy sector,"
"Our outlook is for the positives to begin to reassert themselves during the second quarter, and to do so clearly in the second half of the year. The interest rate cut in January and the lower Canadian dollar are working to speed up the transition.”
"The impact of the oil price shock is happening faster than initially expected; it does not appear to be larger than we anticipated in January,"
"The negative effects of lower oil prices hit some sectors of the economy right away,"
"The various positives - more exports because of a stronger US economy and a lower Canadian dollar, and more consumption spending as households spend less on fuel - will arrive only gradually, and are of uncertain size."