Bank of Canada Governor Stephen Poloz took exception to an Organization for Economic Co-operation and Development report urging the Bank of Canada to start raising interest rates by the end of next year.
Mr. Poloz said Wednesday that he is comfortable with the central bank's decision last month to shift to a neutral stance on rate hikes, abandoning an 18-month pledge to eventually raise rates to more normal levels.
He suggested that the Paris-based Organization for Economic Co-operation and Development likely applies different judgments and models than he does to project where the economy is headed.
Testifying Wednesday before the Senate banking, trade and commerce committee, Mr. Poloz said the bank's economic outlook remains "roughly the same" as it was last month when it slashed its growth forecast and dropped its tightening bias.
"While some new data points have been released, our outlook remains roughly the same," he said.
Mr. Poloz said the bank is pumping "appropriate" amounts of stimulus into the economy with an overnight rate pegged at 1 per cent – where it has been since September, 2010. The bank's next rate-setting decision is Dec. 4.
Mr. Poloz said "a healed global economy" is taking shape and that Canada will benefit from stronger U.S. growth.
But he acknowledged that a recovery in exports and business investment is taking longer than "previously projected."
The Bank of Canada surprised analysts last month when it abandoned its tightening bias and slashed its forecast for the economy.
The bank cut its forecast of annual GDP growth in Canada to 1.6 per cent this year, down from the 1.8 per cent it forecast in July, and to 2.3 per cent in 2014, down from its earlier forecast of 2.7 per cent. In 2015, it expects growth of 2.6 per cent, versus 2.7 per cent previously.
Most economists interpreted the moves as a signal that the central bank likely won't start raising its key interest until 2015.
That has helped push the Canadian lower versus the U.S. dollar in recent weeks.