Shame about all the turmoil in that other place..
Poloz says Canada’s economy in ‘sweet spot’; warns of cryptocurrency’s allure
Bank of Canada Governor Stephen Poloz says Canada's economy has reached a point of near-perfect balance, with most companies running at full capacity and inflation nearing the central bank's elusive 2 per cent target.
"We are at a point in the economic cycle that I think of as the "sweet spot," Mr. Poloz said in remarks prepared for a speech in Toronto Thursday. "We know that a majority of Canadian companies are running flat out."
Mr. Poloz has often talked about to this economic juncture as "home," and for the first time since becoming governor in mid-2013, he says Canada is nearly there.
"We find ourselves quite close to home, and getting closer, with the economy now running close to full output and inflation expected to be around 2 per cent later in 2018," Mr. Poloz said.
Mr. Poloz also issued a warning to people who may be piling into high-flying bitcoin and other so-called cryptocurrencies, insisting they are not currencies at all.
"The term 'cryptocurrency' is a misnomer – 'crypto,' yes, but 'currency, no," he said. "For something to be considered a currency, it must act as a reliable store of value, and you should be able to spend it easily. These instruments possess neither of these characteristics, so they do not constitute "money."
The central bank has said previously that it is exploring the possibility of eventually issuing its own digital currency for retail transactions.
The Bank of Canada has raised its benchmark interest rate twice so far this year – to 1 per cent. At that level, Mr. Poloz said rates remain "quite stimulative."
And he vigorously defended the bank's decision not to be moving sooner to get its rate back to neutral, particularly with the economy at or near full capacity. The bank considers 3 per cent to be the point where its key rate is neither speeding up nor slowing economic activity.
"We still see signs of ongoing, albeit diminishing, slack in the labour market," he said. "Fundamentally, this is an exercise in risk management."
https://www.theglobeandmail.com/rep...ns-of-cryptocurrencys-allure/article37325511/
Poloz says Canada’s economy in ‘sweet spot’; warns of cryptocurrency’s allure
Bank of Canada Governor Stephen Poloz says Canada's economy has reached a point of near-perfect balance, with most companies running at full capacity and inflation nearing the central bank's elusive 2 per cent target.
"We are at a point in the economic cycle that I think of as the "sweet spot," Mr. Poloz said in remarks prepared for a speech in Toronto Thursday. "We know that a majority of Canadian companies are running flat out."
Mr. Poloz has often talked about to this economic juncture as "home," and for the first time since becoming governor in mid-2013, he says Canada is nearly there.
"We find ourselves quite close to home, and getting closer, with the economy now running close to full output and inflation expected to be around 2 per cent later in 2018," Mr. Poloz said.
Mr. Poloz also issued a warning to people who may be piling into high-flying bitcoin and other so-called cryptocurrencies, insisting they are not currencies at all.
"The term 'cryptocurrency' is a misnomer – 'crypto,' yes, but 'currency, no," he said. "For something to be considered a currency, it must act as a reliable store of value, and you should be able to spend it easily. These instruments possess neither of these characteristics, so they do not constitute "money."
The central bank has said previously that it is exploring the possibility of eventually issuing its own digital currency for retail transactions.
The Bank of Canada has raised its benchmark interest rate twice so far this year – to 1 per cent. At that level, Mr. Poloz said rates remain "quite stimulative."
And he vigorously defended the bank's decision not to be moving sooner to get its rate back to neutral, particularly with the economy at or near full capacity. The bank considers 3 per cent to be the point where its key rate is neither speeding up nor slowing economic activity.
"We still see signs of ongoing, albeit diminishing, slack in the labour market," he said. "Fundamentally, this is an exercise in risk management."
https://www.theglobeandmail.com/rep...ns-of-cryptocurrencys-allure/article37325511/
