Stephen Poloz

The Bank of Canada vowed to continue taking a hands-off approach to influencing the Canadian dollar, saying it can’t replace markets in determining the appropriate level of the loonie.

The Bank of Canada is keeping its trend-setting interest rate at 1 percent, saying economic conditions have worsened somewhat in the past few months and continued monetary stimulus remains necessary.

A sudden and sharp correction in the housing market could have a devastating impact on the Canadian economy overall, enough to trigger another recession, says a new Bank of Montreal report.

Bank of Canada governor Stephen Poloz says he has not ruled out a future cut to interest rates despite his belief that the global and Canadian recoveries are picking up steam and that disinflationary pressures appear to be waning.

Bank of Canada is maintaining a neutral stance on whether its next move will be to raise or lower the key interest rate, amid a weak economy and low inflation.

Bank of Canada governor Stephen Poloz has cited “underperforming” inflation and a slow rebound in exports among his major concerns for the economy.

Canada’s housing market is not in a bubble and not likely to suffer a sudden and sharp price correction unless there is another major global shock to the economy, says Stephen Poloz.

Poloz disagreed with an assessment by the OECD that the Bank of Canada would have to start raising interest rates by the end of 2014.

Poloz is set to succeed Carney when Carney leaves the Bank of Canada on June 1 to assume the role of Governor of the Bank of England.