Poloz spoke to the CBC
The CBC is teasing some comments from an interview to be aired with Bank of Canada governor Stephen Poloz tomorrow:
High household debt made is weary from the beginning that each hike would have more of an impact than before
Our research expanded on that and our model now has 50% more interest rate sensitivity in it than historically
The model has done a good job over the past 12 months, our confidence is growing that we've got that just about right
This sounds less hawkish but at the same time, Poloz talked about a return to neutral rates today so they must have calculated that they economy can handle it.
All that said, the BOC sounds like it's in love with its own model.
