The Bank of Canada maintains firm confidence in the domestic economy, and the interest rate decision is in line with market expectations. Investors immigrating to Canada can feel assured about the Canadian economic environment. Canada's inflation trend is in line with expectations, and the economy is recovering, primarily due to the support of monetary policy and the depreciation of the Canadian dollar. Bank of Canada Governor Stephen Poloz stated in a speech in Ottawa that the depreciation of the Canadian dollar is part of a natural process, and that this depreciation helps shift the engine of economic growth from the commodity sector to the non-commodity sector.
Poloz also pointed out that the Bank of Canada has all the conventional and unconventional tools to achieve its inflation target and address risks to the financial system; he emphasized that Canada faces downside risks to inflation, while the depreciation of the Canadian dollar means higher import prices.
Poloz stated that the process of rising interest rates will be very, very gradual, and he is not concerned about a currency war. Furthermore, Poloz indicated that China is transitioning toward a sustainable economic model, and the Bank of Canada is closely monitoring China's economic situation. Poloz believes that the volatility in the Chinese stock market has exceeded its fundamentals, emphasizing that China will continue to be an important source of global economic development. Poloz noted that most economists believe oil prices will likely recover in the future, but the specific timing is difficult to determine; it will take years for the economy to adapt to the impact of lower prices for oil and other commodities.