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Robust services sector will continue to underpin Canada’s economy - BOC’s Poloz

Bank of Canada (BOC) Governor Stephen Poloz during the press conference said that robust services sector will continue to underpin Canada’s shaky economy and help return to full capacity. Canada is primarily driven by services output which accounts for around 70 percent of GDP.

“I strongly believe that the continued expansion of our service sector is pointing the way toward full economic recovery and the return of sustained, natural growth.” Poloz said.

Poloz indicated last month the BOC had considered cutting rates in October, but decided against it because the “balance of risks” was tilted toward uncertainty. Poloz said it is too early to tell the impact of Trump election and the central bank would not react to hypotheticals. He added that the level of uncertainty for businesses has dropped following US elections.

Poloz said that uncertainty seen during October rate decision is still present and that the release of current account data should help bring things into focus. He said that unconventional measures are not put away and that the central bank will stand ready to use additional tools with rates already so low.

FxWirePro's Hourly USD Spot Index was at -98.5145 (Highly Bearish), while Hourly CAD Spot Index was at -18.3578 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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