December 14, 2017 / 9:22 PM / 3 years ago

Bank of Canada wants economy to run hot, Poloz says

FILE PHOTO: Bank of Canada Governor Stephen Poloz attends a news conference in Ottawa, Ontario, Canada, October 25, 2017. REUTERS/Chris Wattie/File Photo

OTTAWA (Reuters) - Bank of Canada Governor Stephen Poloz said on Thursday the central bank continues to see excess capacity in the labor market and would like to see the economy run hot until that slack is absorbed.

“What we want is for the economy to grow hotter for a while, so that it uses up that excess capacity that is still in the labor market. And the way that will happen is companies will invest more, create new capacity, with more people, and raise our level of GDP,” Poloz said in an interview with CBC Television.

Reporting by Andrea HopkinsEditing by Chizu Nomiyama

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