Drag from cheap oil largely over, Bank of Canada

29 Jun, 2017

Conversations with market participants and business surveys are invaluable for the Bank of Canada's decision-making, Deputy Governor Lynn Patterson said on Wednesday in a speech that reiterated the hawkish sentiment that rate cuts had done their work.
Repeating Senior Deputy Governor Carolyn Wilkins' recent assessment of the bank's move to cut rates twice in 2015, Patterson said the rate cuts had done their job. "Two years later, it is our view that these cuts have helped facilitate the economy's adjustment to the oil price shock and that the economic drag from lower prices is largely behind us," Patterson said in prepared remarks to financial analysts in Calgary.

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