02:55 Speech from Poloz - The Central Bank of Canada

The Canadian economy is making progress in adjusting to low oil prices and recovering from the global financial crisis, Bank of Canada Governor Stephen S. Poloz said today.

While the energy industry continues to struggle, there are signs of strength in non-energy exports, even though the data have been volatile in recent months, Governor Poloz said. The past depreciation of the Canadian dollar is supporting exports, including tourism, the Governor added. “Several categories are encouraging,” he said. “Many export sectors are operating near their capacity limits, which augurs well for future investment and job creation.”

Governor Poloz also said Canadian households are remaining resilient, particularly outside resource-producing areas. Low interest rates and a solid job market have helped sustain consumer spending. “Data from the first quarter show that consumption, including big-ticket items such as motor vehicle sales and housing, has remained strong,” he said.

Both domestic and external risks remain. “Continued patience is required, but we have the right to be optimistic,” the Governor said. “There is a resilience and flexibility among Canadians that gives me confidence that we will get through these adjustments and our economy will return to natural, self-sustaining growth.”

BOC...