BRIEF-Testimony from Bank of Canada head Poloz

Tue Nov 4, 2014 12:06pm EST
 
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OTTAWA Nov 4 (Reuters) - Below are some highlights from testimony from Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins before a parliamentary committee:

* Bank of Canada's Poloz: household imbalances risks not declining as hoped, expect will be easing down over course of projection

* Bank of Canada's Wilkins: forward guidance we had was very implicit in everything else we were saying; wasn't worthwhile to say it again

* Wilkins: there may be time in future when uncertainty particularly high when forward guidance may be useful

* Poloz: there are not just benefits to forward guidance but costs when markets function in asymmetric manner

* Poloz: "false dawns" in economic recovery have made companies understandably cautious in investing

* Wilkins: don't know extent to which there might be over-valuation, over-building in Canadian housing sector

* Poloz: European headwinds being offset by tailwind from U.S. recovery in terms of updating central bank's outlook

* Poloz: if were to raise rates now would have larger effect than in past because households more indebted (Reporting by Ottawa bureau)