2017 a year of "significant progress" for BOC, says Poloz

Bank of Canada Governor Stephen Poloz said the economy will need less monetary stimulus overtime, should it continue to operate “close to potential” and inflation is near target.

But bank will remain cautious in adjusting its interest rate, since a number of “uncertainties” remain, Poloz said the bank’s 2017 Annual Report released on Monday. While much of the downward pressure on inflation in Canada was the result of slack in the economy, other factors could be at play, such as developments in the digital economy, or heightened international competition. The Bank needs to understand these undercurrents to achieve its inflation target,” he added.

The central bank hiked raise twice in 2017, reversing cuts set in 2015 to help the economy adjust to the large drop in oil prices back then.

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