In this brief interview with BNN, Ed Devlin discussed the Bank of Canada’s press conference on the Canadian economic situation. Ed Devlin stated that insolvencies have been the top concern for the Bank for the past 5 years, and likely will be for the next 3-5 years. He went on to state that Stephen Poloz, head of the Bank of Canada at the time, will probably have a very positive legacy after leaving office, citing successes such as inflation rates being on target, solid wage growth, low unemployment, and effective management of oil price shocks. He also noted that the Governor Poloz’s communications style had improved over his term, and that he had reinforced both the Bank’s inflation targeting regime and financial market stability. When asked about wage growth in Canada, Ed noted that it is very interesting that we are seeing growth in wages when we have such a high growth of the workforce due to factors such as immigration. He believed that this trend brought into question the accuracy of the estimated output gap. Finally, in response to concerns about labour demand, Ed said that he did not see a huge skill mismatch in the labour market, and that the slight reduction in labour force participation reflects the demographic changes in Canada’s population.
Insolvencies ‘top concern’ for Bank of Canada: PIMCO
Jan 22, 2020