April 28, 2015 / 2:33 PM / in 3 years

BRIEF-Bank of Canada's Poloz speaks in Ottawa

April 28 (Reuters) - BoC’s Poloz: Not Seeing Any Inflationary Risks On The Horizon; Predominant Risk Is Downward Pressure; Inflation Expectations Well

* Bank of Canada’s Poloz, asked about international risks, says world has been living through slow and repeatedly disappointing growth

* Bank of Canada’s Poloz: corporate balance sheets are in good shape, cash balances ready to be deployed though with prudence; investment is now starting to be made

* Bank of Canada’s Poloz: uncertainty is a little higher than it would normally be at this stage of the business cycle

* BoC’s Poloz: lower C$ is absolutely of net benefit

* BoC’s Poloz: not suggesting oil shock was just 3 or 4 month event and then it’s over; positives will overwhelm negatives starting in Q2

* BoC’s Poloz: watching very carefully how oil shock unfolding on housing, particularly in Alberta

* BoC’s Wilkins sees Canada heading for soft landing in overall housing market; sees signs of that outside of Toronto, Vancouver

* BoC’s Poloz: being purposefully cautious on manufacturing because of what we’ve been through; fundamentals are stronger than what we’re forecasting

* BoC’s Poloz: we don’t believe we are in a housing market bubble

* BoC’s Poloz: not seeing people buying multiple houses just because they can sell them

* BoC’s Poloz: would be unusual to have a cycle like we had in housing and not have a degree of overvaluation

* BoC’s Poloz: underlying inflation currently around 1.6 or 1.7 percent; should move up to 2 percent

* Term unemployed is lower, amount of involuntary part-time workers lower, job vacancies up

* BoC’s Poloz: strength of U.S. economy has potential to surprise us on the upside

* BoC’s Poloz: countries that try to devalue their currency end up with higher inflationBoC’s Poloz: insurance amount was about right on Jan 21, referring to rate cut

* BoC’s Poloz, asked if trying to shock the market, says it’s not our intent to surprise or frighten people

* BoC’s Poloz: C$ depreciation is giving substantial boost to cash flow to companies with export orders

* BoC’s Poloz: no one is claiming we know exactly what is happening in Q1 or Q2; bank will continue to monitor those things

* BoC’s Poloz testimony ends Source text for Eikon: Further company coverage: (Reporting by Randall Palmer and Leah Schnurr in Ottawa; Editing by Jeffrey Hodgson)

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