BoC Governor Stephen Poloz caught the attention of the Canadian market yesterday as he hinted towards the possibility of an interest rate hike from the central bank this July, with Poloz saying that leftover economic slack from the country is now being consistently absorbed into economic growth. This statement from Poloz triggered a surge in the value of the loonie and caused it to reach its highest levels within a four-month period and has also subsequently increased government yields on Canadian bonds. Poloz’s statement comes at a time wherein other central bank officials in the UK and the EU economy stress their intent to halt the flow of economic stimulus within their respective countries. When asked about the central bank’s stance on its policies, Poloz merely said that the entire committee is now thoroughly studying the situation now that the slack is being fully utilized by the economy.
