Canada’s economy is still running on two speeds, with household spending growth holding up even as sectors linked to low commodity prices struggle, Bank of Canada Deputy Governor Timothy Lane said on Thursday.
Lane reiterated the central bank’s cautious take on Canada’s tepid economy a day after it held interest rates steady and struck a dovish tone in its statement.
While more new firms were starting up and jobs being created in the United States, investment in Canada’s key energy sector has shrunk rapidly, he said.
Lane said policymakers remained data-dependent and ready to change their view if needed.
“We have to be patient. We have to watch the numbers coming in and we have to be very careful ... and not get carried away,” but if there is enough information to change our view, then we change it, said Lane, who was addressing a business group in Thunder Bay, Ontario.
Analysts said the dovish tone of the bank’s closely watched policy statement on Tuesday had opened the door to a possible rate cut, though it still remained a long shot. Most market watchers expect no change in policy until 2018.