Poloz calls for action to avoid deflationary spiral
It is critical to avoid deflation as it interacts “horribly” with debt, outgoing BoC governor says
The Canadian economy is going to need significant monetary stimulus throughout the recovery from the Covid-19 crisis to ensure it does not slide into deflation, Bank of Canada governor Stephen Poloz said in his final speech in charge.
Poloz said the actions already taken by the central bank and the government will “clearly” lead to high levels of indebtedness in the economy. It is therefore critical that deflation is avoided to prevent the economic fallout from being significantly worse, he
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