New Bank of Canada Governor Stephen Poloz spoke to the House of Commons finance committee on June 6th.
This was his first public statement on the Interest Rate Policy since taking over.
As reported in the Canadian Press, he indicated that there would be no shift from the current low interest rate policy under his leadership, at least in the short term, despite fears it is creating imbalances in the economy. Although keeping rates low for a long period has a distorting impact on the economy, including triggering excessive borrowing, Poloz says the central bank must also consider the risk to the fragile economy of raising rates too soon.
“My concern is we do the right thing so this (weak economy) doesn’t last for a generation,” he told the Commons finance committee.
“For now … we don’t see that those risks (from low rates) are manifesting themselves in a threatening way.”
Depending on your situation rates may be a factor in determining whether you should be investing your money or paying down additional debts. To schedule a time to meet with Janet or Jennifer, discuss your options and enhance your planning today contact us.