Monetary policy in Canada is still stimulative despite an increase in interest rates last week, Poloz told legislators.

Last week, the central bank hiked its key interest rate by 25 basis points to 1.75 percent, its fifth increase since July 2017. Money markets expect another hike as soon as January.

Major US stock indexes climbed, helped by gains for chip stocks as investors took advantage of cheaper prices following a steep recent pullback for equities.