Tapping new hiring pools key to growing economy without sparking inflation: Poloz

CLOSING BELL: GOLD AND POSITIVITY FROM POLOZ PUSH TSX HIGHER

CLOSING BELL: GOLD AND POSITIVITY FROM POLOZ PUSH TSX HIGHER

The Canadian dollar weakened against the greenback on Tuesday after Bank of Canada Governor Stephen Poloz said that the country's economy could grow without spurring inflation, though investor positioning was seen as exaggerating the move.

"It should be clear that there are likely to be significant economic benefits associated with allowing the economy to find its way to a higher, more productive economic equilibrium, if this can happen within our inflation-targeting regime", Poloz said.

Mr. Poloz said the central bank is keeping a close eye on this creation of new economic potential as part of its "risk management approach" to monetary policy.

As this process involves upside and downside risks to inflation, the central bank will remain particularly data-dependent, Poloz said.

"The governor's choice of [speech] topics is in line with our view that he's looking for reasons to take rate hikes slowly", Canadian Imperial Bank of Commerce chief economist Avery Shenfeld said in a research note.

"This is important, for it means that Canada may be able to have more economic growth, a larger economy, and therefore more income per person, without generating higher inflation", he said.

"We cannot know in advance how far the capacity-building process can go, but we have an obligation to allow it to occur".

Poloz said Canada is in the "sweet spot" of the economic cycle where companies will need to hire in order to boost sales.

Despite Canada's low unemployment rate, a wider range of labor market indicators point to "a degree of untapped supply potential in the economy", Poloz said.

Mr. Poloz cited the example of Quebec, which has dramatically raised the participation rate of prime-age women to 87 per cent from 74 per cent over the past two decades by subsidizing child care and extending paid parental leave.

In comparison, he says about 83 per cent of prime-age women participate in the national workforce and lifting it to Quebec's level would add nearly 300,000 people to the country's labour force and expand economic growth.

Youth represent another source of untapped potential.

Poloz noted that the federal government's budget last month made commitments aimed at increasing the labour-force participation of women.

Although the labor market has become healthier over the past year, there is still some slack, Poloz said.

The increased investment, meanwhile, will help bring more people into the work force - such as women, youth and the long-term unemployed.

Notícias recomendadas

  • Jay-Z, Beyonce Pay Homage to 1973 Film in Tour Promo

    Jay-Z, Beyonce Pay Homage to 1973 Film in Tour Promo

    The pair last toured together in 2014 for the first "On the Run" tour, supporting her self-titled 2013 album and Jay's Magna Carta Holy Grail .

    QTS Realty Trust (NYSE:QTS) Cut to Neutral at Guggenheim

    Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued. JMP Securities has "Market Outperform" rating and $92 target. (NYSE:DLR) on Thursday, February 15 with "Hold" rating.
    Surprising resignation of one of the top managers in Goldman Sachs

    Surprising resignation of one of the top managers in Goldman Sachs

    Last Friday, the Wall Street Journal reported that Blankfein would be stepping down "as soon as year's end". The bank typically maps out its succession planning by naming two or three candidates to top roles.
  • Four killed in blast at military kitchen in Yemen

    Four killed in blast at military kitchen in Yemen

    At least three people were killed in a suicide auto bombing in Yemen's coastal city of Aden on Tuesday, according to a medical source.
    Nicolas Cage will finally play Superman

    Nicolas Cage will finally play Superman

    To the Movies, a big-screen adaptation of Cartoon Network's popular animated Teen Titans Go! series. Teen Titans GO! to the Movies is scheduled to open in theaters July 27.
    Singapore tops charts again - this time for best performing global smart city

    Singapore tops charts again - this time for best performing global smart city

    As a result, Singapore's was said to have undergone rapid transformation since independence, becoming the world's top smart city. Juniper found from the study that smart cities have the potential to save individuals about 125 hours every year.
  • State of Decay 2 Collector's Edition features a latex zombie mask

    State of Decay 2 Collector's Edition features a latex zombie mask

    State of Decay 2 is an upcoming multiplayer zombie survival fantasy game, which will be released as an Xbox Play Anywhere game. We assume this is an oversight and doesn't mean that the Collector's Edition won't actually ship with the game.

    Ziopharm Oncology In (ZIOP): Stock Overview

    This volatility expressed as a percentage coefficient within option-pricing formulas, arises from daily trading activities. If you are going to be trading the stock, you want to ensure volume is healthy so you are not stuck in a position.
    New Zealand Party Is Faulted After Sex-Assault Claims at Youth Camp

    New Zealand Party Is Faulted After Sex-Assault Claims at Youth Camp

    Ardern said that the 20-year-old was not a Young Labour member or part of the staff and that she did know why he was there. Those affected had not been offered counselling until nearly a month after the event.
  • ICC elects UhuRuto cases judge Chile Eboe-Osuji as President

    ICC elects UhuRuto cases judge Chile Eboe-Osuji as President

    Eboe-Osuji's three-year-term begins immediately following the vote by judges at the International Criminal Court. He was also said to have served as a Legal Advisor to the United Nations High Commissioner for Human Rights.
    Amazon Recalls own brand battery chargers after 53 failures

    Amazon Recalls own brand battery chargers after 53 failures

    Amazon has removed all of the affected models from its store to prevent more from entering circulation. Fortunately, there are about a million more power banks on Amazon right now that won't catch fire.
    Volkswagen assigns $24 billion in battery orders to speed EV push

    Volkswagen assigns $24 billion in battery orders to speed EV push

    Yet, Muller said electrification does not mean the firm is moving away completely from conventional technologies. In terms of operating profit, an operating return on sales of between 6.5 and 7.5 percent is anticipated.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.