Bank of Canada Governor Stephen Poloz said central banks aren’t going to aggressively tighten policy because there are still underlying vulnerabilities in many economies.
Calling this the “‘end of easy money’ is a little too simple,” he said in a Bloomberg Television interview in Davos, Switzerland. “It’s likely that money is going to remain easy for some time yet” because “economies are still working their way through a lot of underlying stresses.”
Central banks are slowly moving away from the emergency stimulus put in place after the financial crisis, and leaders gathered for the World Economic Forum have combined optimism with caution in their assessment of the outlook. The IMF sees global growth accelerating to the fastest pace in seven years, but exuberance in markets, surging debt in China and elsewhere, and political flash points — from Brexit to North Korea — are all risks.