BOC head man Stephen Poloz speaking in Ottawa
- Rate cut helped mitigate risk to financial system by addressing drop in income and jobs caused by oil price shock
- Canada household vulnerabilities have increased
- Effect of cheap oil on incomes should be partly offset by cheaper gas, stronger US growth, lower CAD and impact of easier monetary policy
- Probability of a sharp correction in house prices remains low
- Not seeing conditions that would lead to a severe recession and a steep rise in joblessness
Victory for another central bank that cut rates ;-)