OTTAWA – The Bank of Canada’s governor says today’s era of stubbornly low interest rates means it’s time to revisit retirement plans, temper business investment expectations and encourage policy-makers to pounce on smaller morsels of economic opportunity.
In prepared remarks of a speech he was to deliver today in Quebec City, Stephen Poloz laid out recommendations on how to adapt to low interest rates that he expects will linger for a long time.
Poloz says with Canadians living longer, they should consider saving more for retirement, working longer than planned and changing their investment mix to adjust to the persistently low interest rates.
He also urges businesses to invest more to help the economy, saying the current climate means they must lower their expectations when it comes to rates of return on investments.
The central banker says governments should cobble together a mix of policies to the boost the country’s economic output — even if each opportunity on its own offers only a slight improvement.
Poloz says policy-makers must continue to pursue new trade opportunities, invest more on infrastructure and tweak tax and immigration policies to help promote the growth of new firms.