Bank of Canada governor says climate change poses risks to financial systems
Bank of Canada governor says climate change poses risks to financial systems"It's about the transition risk, right, as everyone's portfolio and all their lending practices kind of converge on a different climate trend line, that that could have significant consequences for financial systems," he said.
Stephen S. Poloz (born 1955) is a Canadian banker and the ninth and current Governor of the Bank of Canada . He is also a member of the board of directors for the Bank for International Settlements. In July 2017, Poloz raised the Bank of Canada ' s key interest rate to 0.75
OTTAWA/TORONTO, Dec 5 (Reuters) - Bank of Canada Governor Stephen Poloz is expected to step down when his seven-year mandate ends next June and make way for the country' s first female central bank chief, according to economists and market strategists.
OTTAWA — Outgoing governor Stephen Poloz once joked that, after being chosen to succeed Mark Carney as head of the Bank of Canada in 2013, he was received much like the guy who replaced Wayne Gretzky. That is to say: nobody actually remembers the guy who replaced The Great One .
Poloz was plucked from relative obscurity as head of Export Development Canada and, despite being on the shortlist of successors, was considerably less well-known compared to the high-profile Carney, who had engineered Canada’s response to the deepest recession in decades and made Time magazine’s 100 “most influential” list.
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As Canada's federal Liberals buckle down to their new term, markets hint that stimulus by central banks has helped reverse the worst of the global economic slide. But the OECD says more help is needed.According to those trying hard to understand what markets are telling us about the economy, "not as bad as feared" is the new global watchword.
Mr. Poloz first joined the Bank of Canada in 1981 and occupied a range of increasingly senior positions over a Governor Poloz talks about Canada ’ s housing market and how the mortgage market could evolve to give Canadians Stephen S. Poloz , Governor of the Bank of Canada , speaks before the
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“I run into people in the street and they ask me, ‘how’s Mark?’” Poloz said in an April 2019 interview with Maclean’s. “And I’m like, ‘great… and I’m doing okay too.’”
But Poloz, who announced on Friday he would be stepping down from the role, has nonetheless made a name for himself over the last six years — even if he hasn’t reached rock-star status.
He became known for his honest communication style, delivered with a trademark folksiness and a penchant for metaphors (he once used a “spaghetti-sauce model” to describe monetary tapering after the recession of 2007-08, and compared exchange rate fluctuations to walking a dog on a leash).
Canada's economy is resilient, but headwinds will keep the Bank of Canada in its holding pattern
Canada’s economy is deeply flawed, but it appears to have at least one characteristic that will keep it in the big leagues: resiliency. Gross domestic product grew at an annual rate of 1.3 per cent in the third quarter, Statistics Canada reported on Friday. That should mute the recession talk, while at the same time bolstering the arguments of those who say Canada needs to work on its competitiveness. The Bank of Canada reckons the economy can run at an annualized pace of about 1.7 per cent without overheating, so clearly there’s some work to do. For now, the central bank will probably continue to leave that work to others.
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OTTAWA— Bank of Canada governor Stephen Poloz is unapologetic about his cautious approach to raising interest rates. Like central bankers elsewhere, Poloz is trying to figure out how to bring historically low interest rates to more normal levels without inadvertently triggering another downturn.
He made a point of accounting for the pulse of the “real economy,” focusing on business investment and the sentiments of CEOs more than his predecessors. Most of all, he kept inflation largely within the bank’s target, even amid trade threats from U.S. President Donald Trump and a Canadian economy that, after years of tepid growth, suddenly caught fire in 2017.
It wasn’t always a smooth ride. He started his term amid some concerns that his connection to the EDC and exporters would make him partial to a lower Canadian dollar. Others were rankled by his communications style, which sometimes veered from the Bank of Canada’s official script. He gradually overcame those frustrations.
“I think he’s gained more respect over time in this role,” said Mark Chandler, head of Canadian rates strategy at RBC Capital Markets.
Poloz took over from Carney at a time when the country was climbing out of the deepest recession in decades. A prolonged period of low interest rates had pushed household debts to among the highest of any developed nation, leaving the governor tightly wedged between mediocre economic growth and fast-expanding consumer credit.
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Bank of Canada Governor Stephen Poloz , seen in Toronto on Dec. < Stephen Poloz has a new swagger these days. The Bank of Canada Governor is watching 2017 come to a "It' s the first year where we had a steady flow of encouraging news on the economy," Mr. Poloz tells The Globe and
Stephen Poloz used his first public appearance as Bank of Canada Governor Thursday to establish that he is like his predecessor Mark Carney in one It "would certainly make the list" he said, though he seemed more impressed by the "very fortunate" effort by households to " step up and expand their
His first major test came when oil prices suddenly collapsed in mid-2014, sending the wider economy into a tailspin. Poloz shocked the market with a sudden rate cut in early 2015, followed by a second cut months later, reducing the overnight rate to 0.5 per cent. The move both solidified what proved to be a prescient move by Poloz, while also laying bare the limits of monetary policy in the current economy.
“He was a creature of his time,” Chandler said. “It’s something you can give him credit for — he acted quite quickly, and at a time when others maybe hadn’t recognized the impact of the oil shock.”
Poloz was born in Oshawa, Ont., and completed his economics degree at Queen’s University in Kingston. He received a master’s degree in economics in 1979 and a PhD in economics in 1982, both from the University of Western Ontario. He first joined the Bank of Canada in 1981, where he rose up through the ranks over a 14-year period.
Christopher Ragan, former special advisor to Bank of Canada governor David Dodge, said it was immediately evident to him that Poloz was on the fast track for the governor position when he first met him in the early 90s.
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While everyone else cuts interest rates to boost investment and spending, so far, most Canadians seem not to need the extra stimulus.South of the border, there was much hand-wringing that a shortened holiday spending season this year just wouldn't give our American cousins enough time to shop till they drop.
Bank Of Canada Holds Key Interest Rate Steady .. Stephen Poloz Says Four Words, And The Loonie Loses A Cent U.S. Canada ' s Economy Will Grow Slower Due To Housing, Exports: BoC. Get top stories and blog posts emailed to me each day. Newsletters may offer personalized content or
Poloz 's research at the Bank of Canada contributed to the groundbreaking decision to adopt an But no one should expect the kind of free-for-all that goes on in Washington. Poloz hints that the open Poloz believes Canada ' s trajectory will depend on how many new CGIs emerge in the years ahead.
Poloz was heading the bank’s then-research arm at the time. The other potential successor Ragan had identified was Tiff Macklem, who would later become senior deputy governor at the bank.
“They just had the complete package of things that you want,” Ragan said. “They had the analytical power, they had the administrative savvy, they had the communication chops. It was clear as day to me.”
Macklem was seen by many analysts as a natural successor to Carney, a long-time Bank of Canada employee who seemed groomed for the job. The decision by then-finance minister Jim Flaherty to appoint Poloz was met with confusion by some.
In a 2013 interview with the Globe and Mail, former European Central Bank economist Thorsten Koeppl said there was “a lot of head scratching going on” after the appointment. Macklem stepped down from the bank shortly after the appointment, four years before the end of his term.
But Poloz gradually won the confidence of Bay Steet, in part through a communication style that, unlike his predecessor, would readily convey the unknowns and uncertainties in the bank’s economic models.
“It’s part of his ‘aw-shucks, we-don’t-know-everything-that-the-previous-guy-knew’ communication style,” Ragan said. “He probably trades on that a little bit, and that’s okay.”
Who will be the next Bank of Canada governor? Here are six candidates
Now that Stephen Poloz has announced he will step down as Bank of Canada Governor after his seven-year term ends in June 2020, attention turns to the possible candidates who might replace him. Here are six possibilities. The Favourite Carolyn Wilkins , senior deputy governor, Bank of Canada Hometown: Peterborough, Ont. Education: bachelor of arts (economics), Wilfrid Laurier University, Waterloo, Ont., 1987; master of arts (economics), Western University, London, Ont., 1988 Strengths: Stephen Poloz has been grooming Wilkins to take over for him since she became his No. 2 in 2014.
OTTAWA - Canada is missing out on about billion in export sales and could continue to do so for years to come as uncompetitive producers continue to lose market share, Bank of Canada governor Stephen Poloz said Tuesday. The central banker , who was testifying before the Commons finance
The comments by Bank of Canada governor Stephen Poloz came as Ontario Premier Kathlyn Wynne said her Liberal government was "very close'' to introducing a package of measures to help cool the hot housing market. The average price of detached houses in the Greater Toronto Area was
“He would say, ‘there are things the bank doesn’t know, things that I as a governor don’t know, things that the economics profession doesn’t know.’ And I think that’s extremely healthy.”
Another of his trademarks was a stand against debt. Poloz was uncommonly outspoken about rising consumer debt levels across Canada, and often expressed his worries over a heated housing market.
“That’s something that’s reasonably different than what other governors have done in the past,” said Jean-François Perrault, chief economist at Scotiabank.
“Unfortunately, that also muddles a little bit the approach to monetary policy,” he added.
Some analysts have disagreed with Poloz’s decision to continue holding rates, especially in recent months when trade rifts between the U.S. and China kicked off a wave of cuts at central banks around the globe.
“Over the last few weeks one could make a very good case that there was a need for lower interest rates in Canada to guard against risks,” Perrault said.
Scotiabank had predicted the bank would cut rates in October or December.
The wisdom of Poloz’s move remains to be seen, particularly with Canada’s current interest rate of 1.75 per cent being the highest among advanced economies.
Meanwhile, consumer debts have continued to rise. Canada’s household debt in 2018 averaged 181 per cent of total income, well higher than the United States (109 per cent), Germany (95 per cent), and others, according to the Organisation for Economic Co-operation and Development.
That could be among his more unfortunate legacies at the bank, RBC’s Chandler said. Concerns about household debts had already begun to surface when Poloz took over from his predecessor, when the Canadian economy was taking its long, slow climb back to health.
“Seven and a half years later, debt levels are even higher,” Chandler said. “So if that legacy was a question mark for Carney, it’s even more so under Poloz.”
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Few movie sequels are more anticipated that “Top Gun: Maverick”, the Tom Cruise-starring followup to his 1986 mega-hit “Top Gun”. On Sunday, Paramount unveiled a new poster for the upcoming film, with Cruise’s character leaning against a small propeller plane while watching a pair of fighter jets flying in formation overhead. Cruise, 57, was onOn Sunday, Paramount unveiled a new poster for the upcoming film, with Cruise's character leaning against a small propeller plane while watching a pair of fighter jets flying in formation overhead.