Bank of Canada governor Stephen Poloz says the economy needs a longer lift from stimulative interest rates to overcome domestic and global economic hurdles, though he predicts the country's recent economic weakness will only be temporary. The central bank left its interest rate unchanged last month, saying there was more uncertainty about the timing of future hikes because Canada had entered a soft patch. "We're not forecasting a recession," Poloz told a news conference after his speech when asked about the inverted yield curve. For example, Poloz said interest rates are much lower today, the stock market is performing well and investors haven't pulled away from corporate debt. Following last month's policy decision, the bank said interest rates will still need to rise over time to return to their neutral range.

Source: CBC News April 01, 2019 19:05 UTC