«Given the downgrade to our outlook, Governing Council actively discussed the possibility of
adding more monetary stimulus at this time, in order to speed up the return of the economy to full capacity,» Poloz said after the release of the central bank's latest policy announcement.
But that didn't happen until Poloz said these words about an hour later: «Given the downgrade to our outlook, Governing Council actively discussed the possibility of adding
more monetary stimulus at this time, in order to speed up the return of the economy to full capacity.»
The euro fell to its lowest level against the dollar in nine years Monday, driven by fears of political turmoil in Greece and hopes
for more monetary stimulus from the European Central Bank.
Not only are these uncertainties still with us, they have likely prompted central banks to roll out
even more monetary stimulus, which in turn has likely lifted asset prices and given the false impression of a backstop against further sharp declines.
Poloz made clear at his last policy announcement in January that he wanted to assess the makeup of Trudeau's deficit - spending program before deciding
whether more monetary stimulus is needed.
-- 1 % each stocks fell Tuesday after fed minutes from the last meeting indicated the Central Bank was less likely to engage
in more monetary stimulus.
Dr. Lacker
views more monetary stimulus as unnecessary because the economy will experience sub-par growth — but growth nonetheless — for the balance of 2010 and for 2011.
Given the downgrade to our outlook, Governing Council actively discussed the possibility of
adding more monetary stimulus at this time, in order to speed up the return of the economy to full capacity.
Hopes
for more monetary stimulus have propelled stocks higher, with major indexes in New York and Toronto gaining about two percentage points over the past five days.
Not only are these uncertainties still with us, they have likely prompted central banks to roll out
even more monetary stimulus, which in turn has likely lifted asset prices and given the false impression of a backstop against further sharp declines.
OTTAWA, Oct 19 (Reuters)- The Bank of Canada cut its growth forecast on Wednesday and said it actively discussed adding
more monetary stimulus to speed up the nation's economic recovery, surprising financial markets by shifting tone dramatically after its initial rate decision.
April 4 - U.S. stock futures are lower after the latest Fed minutes indicated less chance of
more monetary stimulus.
This is especially relevant with the current market conditions, as some market participants might conclude that central banks could respond to the Brexit vote by adding
more monetary stimulus.