26 August 2014

“In case the economy starts rising sharply, we’ll still have enough space to grow. And with the current situation, we certainly have this space now.”

“The connection between the U.S. economic recovery and ours is not so simple or mechanical … There are still some questions about ours,” – Mr. Poloz noted. “We need to develop our own course, depending on our factors, not theirs.”

The last quote can be viewed as a sign to stop worrying about the central bank raising rates faster that the U.S. “The market doesn’t expect the BoC to lead the Federal Reserve,” – said BMO economist. “We can see a significant difference in messages since October 2013, today the Fed says a rate increase is possible sometimes in 2015, while the Bank of Canada notes it doesn’t know if it’s going to be an increase or a cut.”