Diminishing odds of a BoC rate hike in January: BMO
Don’t count on Bank of Canada Governor Stephen Poloz to save the day when it comes to the recent turmoil rocking stock markets.
Canada’s central bank chief indicated during a news conference in Toronto on Thursday that he may not be able to do much to lift markets, which have slumped this week amid concerns that trade tensions between China and the U.S. are far from resolved.
“Is there a Poloz put? No,” the central banker said in response to a question about whether the central bank will jump in to help markets.
“People are looking at stock markets and saying that’s a signal that there’s a major global slowdown coming,” Poloz said. “And I said well, markets react to everything, they usually overreact to everything. And that’s okay – they’re just more volatile than the underlying fundamentals, that’s something we take for granted.”
Poloz also reiterated a warning on cryptocurrencies that he made a year ago, and described them as a gamble.
“The Bank of Canada has very little to do with cryptocurrencies. I don’t even like the term, quite frankly,” Poloz said.
“They’re crypto assets of some form – in fact it’s not like an investment, there’s no intrinsic value, therefore you’re just playing in a casino.”