OTTAWA — The Bank of Canada says overcoming the economic suffering inflicted by the commodity-price shock essentially boils down to one main option: ride it out.
Central bank governor Stephen Poloz says some measures can buffer the negative effects from factors like the steep slide in oil prices — but no simple policy response will fix them.
Poloz says in a prepared text of his morning speech in Ottawa that the dollar has tumbled along with the decline in oil prices back to roughly the same levels they stood at over a decade ago.
He says the complex economic changes have also led to higher consumer spending and falling employment and investment in the resources sector. Poloz says non-resources sectors, meanwhile, have seen rising employment and investment.
He says the forces that have been set in motion must simply be left to work themselves out even though the adjustment can be difficult for individuals.
Under Poloz's leadership, the central bank lowered its trend-setting interest rate twice in the last 12 months to help cushion the blow of the oil slump.
The Canadian Press