BOC’s Poloz: cautiously positive on Canadian economy

Bank of Canada (BoC) Governor Stephen Poloz appeared before the Canadian Parliament's upper house today, largely reiterating the same talking points he delivered to the lower house earlier in the week, delivering several targeted points about the Canadian economy.

Key highlights:

Canadian economy is "finally positive", rather than a "rosy outlook".

Poloz is much more confident in the economy than at his previous testimony in November.

Some rail constraints have hindered activity, but these are weather-related.

Oil-related investment is falling, which hindered growth in Q1.

BoC intends to discuss fiscal policy 'publicly'.

Rejects notions that he has endorsed government policy.

The CAD is only one input that the BoC analyzes.

The CAD is currently being impacted by interest rate differentials.

Does not believe in a magic number or baseline value for the CAD.

Rising US interest rates could become a concern.

Low oil prices will continue to hamper energy sector growth.

Uncertainty surrounding NAFTA, firms believe Canada is uncompetitive, struggles to get things approved.

Export growth is being limited by constraints in capacity.

Believes federal debt levels are modest in comparison to other countries.