April 30, 2020 / 8:47 PM / a month ago

BRIEF-Bank Of Canada Governor: Canada faces asymmetric risks, as downside risks are far more direct than the upside ones

April 30 (Reuters) -

* BANK OF CANADA GOVERNOR STEPHEN POLOZ SAYS CANADA FACES ASYMMETRIC RISKS, AS THE DOWNSIDE RISKS ARE FAR MORE DIRETHAN THE UPSIDE ONES - SPEECH

* BOC’S POLOZ SAYS ASYMMETRIC RISKS SIMPLIFY OUR RISK MANAGEMENT PROBLEM FOR THE TIME BEING

* BOC’S POLOZ SAYS UNDER NORMAL CIRCUMSTANCES, WE WOULD ALSO BE CONCERNED WITH ADDING TO FINANCIAL VULNERABILITIES

* BOC’S POLOZ SAYS WE HAVE NOT FORGOTTEN ABOUT FINANCIAL VULNERABILITIES

* BOC’S POLOZ SAYS WE WILL PUT MORE WEIGHT ON THESE VULNERABILITIES IN OUR RISK MANAGEMENT FRAMEWORK ONCE CONFIDENT THAT OUR PRIMARY OBJECTIVE WILL BE MET

* BOC’S POLOZ SAYS SCENARIO PLANNING HAS PLAYED A CENTRAL ROLE IN OUR RESPONSE TO THE CRISIS SO FAR, AND I EXPECT THAT WILL CONTINUE

* BOC’S POLOZ SAYS IF WE WERE TO MISJUDGE THE BALANCE OF DEFLATIONARY AND INFLATIONARY FORCES DURING THE RECOVERY, THEECONOMY COULD PICK UP TOO MUCH STEAM AND INFLATION COULD RISE

* BOC’S POLOZ ADDS WE ARE ALERT TO THIS RISK BUT AT PRESENT WE SEE THE RISK OF DISINFLATION AS MORE IMMEDIATE

* BOC’S POLOZ SAYS BY APRIL 24, CUMULATIVE PURCHASES OF ASSETS BY THE BANK STOOD AT C$260 BILLION, EQUIVALENT TO WELL OVER 10 PERCENT OF CANADA’S GDP

* BOC’S POLOZ SAYS ASSET PURCHASES HAVE SO FAR ROUGHLY TRIPLED THE SIZE OF OUR BALANCE SHEET, WHICH BEGAN THE EPISODE AT C$120 BILLION Source text for Eikon: Further company coverage: [ ] (Reporting by David Ljunggren)

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