Poloz Offers Insights at Davos; USD Weaker Ahead of European Central Bank Meeting
Published January 25, 2018
Bank of Canada Governor Stephen Poloz noted that even he does not know how many interest rate hikes will occur in Canada this year. Speaking at Davos, Poloz used this statement to reiterate that his team remains data dependent and are not able to offer certain rate hike trajectories.
Poloz also mentioned the importance of debt levels in Canada, noting that the economy will be more sensitive to higher interest rates. Poloz believes the result of NAFTA negations is unpredictable, however, he has added reassurances that new trade deals would be made in the event of a termination of the 23-year old trade deal.
US President Donald Trump arrived in Davos today to commence his “America First” agenda among other global leaders and businesspersons, culminating the trip with a speech on Friday. Trump is the first US president to attend since Bill Clinton, who was present in the year 2000.
The European Central Bank kept interest rates at current record low levels today as expected; investors will look for hints at an upcoming interest rate rise and further monetary policy changes when ECB President Mario Draghi speaks at 8:30 AM EST.
Data on month on month Canadian retail sales is set to be released today at 8:30 AM EST; growth in these figures along with tomorrow’s consumer price data will help gauge the rate of increasing inflation in the Canadian economy.
Oil prices continue to reach new highs as Brent Crude nears $71 a barrel, its highest level since December 2014; prices moved higher after data on US oil inventories showed a decline in stockpiles, marking the 10th straight week where stockpiles proved lower than expected.