Image: Cenovus Energy OTTAWA — The hit from low oil prices in Western Canada will reverberate across the national economy — but they should have less cross-country bite than the crisis of 2015, the head of the Bank of Canada said Thursday. The 2015 oil-price crash contributed at the time to a slight, technical recession and prompted the central bank to cut interest rates to boost Canada’s economy — twice. Even with the latest collapse in oil prices, governor Stephen Poloz insisted Thursday that he expects interest-rate hikes will still be needed over time. The central bank has been gradually raising rates for more than a year, thanks to the stronger economy. The arrival, however, of future rate increases will likely be more gradual than many observers had predicted just a few days ago. Market watchers, many of whom had expected the bank to increase the rate again in January, are now predicting a slower pace following the concerns expressed by Poloz in recent days regarding recent economic developments. On Wednesday, the bank left the rate unchanged at 1.75 per cent as it underlined fresh negatives, such as the recent drop in oil prices. In explaining the rate decision […]
