The Bank of Canada (BoC) Governor Stephen Poloz said at the Bloomberg Americas Monetary Summit in New York on Monday that the further interest rate cut by the BoC is not needed.
"That amount seems to be about right to restore our track for the Canadian economy for the next year or so and get the output gap to close late in 2016," Poloz noted.
The BoC governor described a shock January interest rate cut as "insurance". The BoC lowered its interest rate to 0.75% from 1.0% on January 21 due to falling oil prices.
Poloz also said that the U.S. economy will expand stronger than expected, and that interest rate hike by the Fed will have a positive impact on the Canadian economy.
The BoC governor hopes that Canada's interest rate would be "normalized" by 2016.