Bank of Canada's Poloz says continued monetary stimulus needed

Wed Oct 22, 2014 11:35am EDT
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TORONTO Oct 22 (Reuters) - The Canadian economy has "considerable excess capacity" and continued monetary stimulus is needed to close the gap, Bank of Canada Governor Stephen Poloz said in a statement on Wednesday following the central bank's October monetary policy statement.

Poloz said forward guidance remained a key element of the bank's policy tool kit - but one reserved for times there are net benefits to its use. The bank had dropped any reference to taking a neutral stance on interest rates in its report and kept its key overnight rate at 1 percent.

The central bank canceled a scheduled news conference Wednesday morning after a gunman shot a solider at the canadian War Memorial in Ottawa and the parliament building was locked down. (Reporting by Solarina Ho; Editing by Chizu Nomiyama)