April 29, 2014 / 9:24 PM / 3 years ago

BRIEF-Bank of Canada's Poloz speaks in Ottawa

TORONTO, April 29 (Reuters) -

* Bank of Canada’s Poloz says household debt ratio is sustainable and will gradually ease

* Bank of Canada’s Poloz: household debt service could become a problem if there is a significant shock to canada’s economy

* Poloz: if there were an economic downturn, we would be vulnerable to a correction in housing prices

* Poloz: willing to accept risks of low-for-long interest rates because we’re not yet out of the downturn

* Poloz: C$ remains in a historical sense quite high versus US$

* Bank of Canada’s Macklem: contribution of c$ to lack of competitiveness has declined a little bit as C$ has declined

* Poloz: treats Ukraine/Russia situation as a down-side risk; still early to determine impact on economy

* Poloz: reduction of fed quantitative easing is now better understood by markets

* Poloz: Bank of Canada’s monetary policy will be conducted completely independently of the u.s.

* Poloz: asked about possible interest rate cut, says if export recovery does not materialize as expected, and therefore inflation would be lower, this could cause reevaluation of stance

* Poloz: if downside risks materialize, then we would talk about the possibility of a lower interest rate

* Poloz: capacity constraints on canadian oil transportation seems to be easing; discount on canadian oil is declining

* Poloz: it will take another couple years to fully come out of the economic downturn

* Poloz: Fed tapering is fully priced into market; further tapering shouldn’t have an effect on asset prices

* Poloz testimony ends Source text for Eikon: (Reporting by Jeffrey Hodgson)

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