April 13, 2016 / 4:21 PM / in 2 years

BRIEF-Poloz: ingredients present to get back to full capacity

April 13 (Reuters) -

* Bank of Canada’s Poloz, asked if would have cut rates without fiscal stimulus, says situation without fiscal shock would have looked worse than in January

* Bank of Canada’s Poloz: would have gone into meeting with same bias as in January, had stimulus not been there

* BoC’s Poloz: mix of policies we have today is more favorable one for economic growth than we had before

* BoC’s Poloz: window of when will close output gap highly subject to change

* BoC’s Poloz: bank views reasonably in line with Finance Department’s estimate of fiscal multiplier effect of stimulus

* BoC’s Wilkins: the reason bank boosted forecast for china is measures taken by China’s government that will result in more infrastructure investment

* BoC’s Poloz: driving force for Canadian economic growth is primarily recovery in United States

* BoC’s Poloz: have seen accumulation of positive evidence export sector is responding; C$ is at best icing on cake

* BoC’s Poloz: if for some reason we were in disagreement with budget analysis, we would say so

* BoC’s Poloz: we think Finance Ministry’s numbers are reasonable

* BoC’s Poloz, asked if higher C$ poses risk to economic rotation, says if we have C$ that’s couple of cents lower or higher, is all rounding from exporters’ point of view

* BoC’s Poloz: we try to look through C$ fluctuations as much as we can

* BoC’s Poloz: want to make sure momentum of economic rotation is actually there

* BoC’s Poloz: there’s no magic number for the C$

* BoC’s Poloz: if for some reason outlook were to deteriorate, would seriously contemplate lowering interest rates

* BoC’s Poloz: our risks are two sided, we have capability of acting in either direction

* BoC’s Poloz: we believe all ingredients are present for us to get back to full capacity in time

* BoC press conference ends For highlights: (Reporting By Leah Schnurr)

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