BRIEF-Bank of Canada press conference

Wed Jan 21, 2015 12:26pm EST
 
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Jan 21 (Reuters) - BANK OF CANADA'S POLOZ SAYS CONCLUDED BENEFITS OF ACTING NOW OUTWEIGHED COST OF SHORT-TERM MARKET VOLATILITY THAT MIGHT ARISE FROM SURPRISE MOVE

* BANK OF CANADA'S POLOZ SAYS ORIGINAL PROJECTION WAS THAT WOULD TAKE UNTIL LATE 2017 TO ELIMINATE EXCESS CAPACITY

* BANK OF CANADA'S POLOZ SAYS THAT DELAY OF GETTING TO FULL CAPACITY WAS CONSIDERED UNREASONABLE AND THEREFORE THE BANK CUT RATES

* BANK OF CANADA'S POLOZ SAYS LOWER INTEREST RATES MAY EXACERBATE HOUSING IMBALANCES BY ENCOURAGING BORROWING, BUT FAR MORE IMPORTANT EFFECT WILL BE TO CUSHION DECLINE IN EMPLOYMENT, INCOME

* BANK OF CANADA'S POLOZ SAYS WANT TO MAKE SURE IF THERE IS MORE DOWNSIDE RISK WE HAVE APPROPRIATELY POSITIONED FOR IT

* BANK OF CANADA'S POLOZ SAYS HAVE THE ABILITY TO "TAKE OUT MORE INSURANCE", LANGUAGE USED TO DESCRIBE RATE CUTS

* BANK OF CANADA'S POLOZ SAYS ON SURPRISING MARKETS, TOOK COMFORT FROM FACT THE POSSIBILITY OF A RATE CUT HAD BEGUN TO EMERGE IN MKTS IN LAST COUPLE WEEKS

* BANK OF CANADA'S POLOZ SAYS DOES NOT SEE RISK OF DEFLATION, WHICH HE DEFINES AS GENERALIZED PRICE FALL OF ALL GOODS

* BANK OF CANADA'S POLOZ SAYS THERE'S A LOT OF SPACE BEFORE WE GET TO DEFLATION, GIVEN CORE INFLATION WHERE IT IS   Continued...