Bank of Canada governor says economy is ‘finally positive’

OTTAWA (Reuters) – Bank of Canada Governor Stephen Poloz said on Wednesday the economy was “finally positive” after a long adjustment to a sharp fall in oil prices, but he added there was still softness in several areas of the country.

Poloz told the Senate’s banking committee that he was “much more encouraged” about the economy than he had been when he last talked to the committee in November 2017.

The central bank has hiked rates three times since last July as the economy improves and the unemployment rate hovers around 40-year lows. Canada, a major crude exporter, was hard hit when oil prices started to slump in 2014.

Poloz made his remarks when pressed by one senator about what she called the bank’s “fairly rosy” outlook that it issued on April 18.

“When we describe the economy, as you say, in rosy terms, it is I would say more like finally positive terms,” he said.

“For the economy as a whole, it has put the adjustments to the oil price shock behind us, but we still have softness in several areas of the country.”

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