Bank of Canada Governor Stephen Poloz says the sudden plunge in the price of crude will knock roughly a quarter percentage-point off economic growth next year.
Making his first public remarks since last week, when he postponed a planned news conference and appearances before House of Commons and Senate committees after the deadly shooting near Parliament Hill, Poloz said oil at less than $90 (U.S.) a barrel would deliver a significant hit to the Canadian economy.
“A quarter-point matters a lot,” he said on Wednesday in testimony before the Senate banking, trade and commerce committee. He told the committee that the economy is only expected to grow by 2 or 2 ½% next year. Read more here.