Sep 27, 2018
By Michael Kramer
The governor of the Bank of Canada says disruptive technologies are making it harder to determine whether – and how quickly – to raise interest rates.
But Stephen Poloz says Canadians don’t need to fear the new digital age – and in fact they are already seeing benefits from it, and embracing it.
His comments came in a speech today in Moncton, N.B. – where he also said the Canadian economy had fully recovered from the 2008 financial crisis – and the collapse in oil prices in 2014.
The central bank governor says digital disruption is just as much a factor in deciding monetary policy as inflation – and the ongoing concerns around global trade uncertainty – but new digital technologies in particular could be giving the economy more room to grow – before inflation pressures really start to emerge.
Poloz says raising interest rates too quickly – could unnecessarily choke off economic growth.