Canadian Govt officials fear the impact of speedy Poloz hikes

Officials within Canada's Prime Minister Justin Trudeau’s government are concerned over the impact of faster pace of tightening by the Bank of Canada (BOC) on the economic growth.

The Canadian officials told Bloomberg reports on the condition of anonymity.

Key Points via Bloomberg:

“Governor Stephen Poloz raised the central bank’s key overnight rate this month for the first time since 2010, and another increase is expected by the end of the year. The officials, speaking anonymously because they’re not authorized to comment, are concerned a series of rate hikes would lead consumers to claw back spending, stunting a recovery from a two-year oil shock.

While Trudeau and Finance Minister Bill Morneau have steadfastly declined to comment on monetary policy, as is customary, some officials privately think Poloz hiked too soon. The concern comes amid global warnings that an era of rock-bottom interest rates has left consumers and countries alike over-leveraged and more vulnerable than ever to hikes.

There’s no sign the government will intervene publicly in any way.”