Low rates mean firms should cut expectations -Bank of Canada

(Adds comment from news conference, updates market reaction)By Leah Schnurr Canadian interest
rates will stay low for longer as the economy faces strong
headwinds and business investment is weaker than expected, but
government spending on infrastructure will help growth, Bank of
Canada Governor Stephen Poloz said on Tuesday.In a speech suggesting the central bank will remain on the
sidelines even as the economy struggles to gain traction, Poloz
said corporations need to adjust their expectations for return
on investment given the low interest rate environment.”There is no smoking gun to suggest that the bank is ready
to provide more stimulus here. They acknowledge that there are
significant headwinds that require in exchange very stimulative
monetary policy,” David Tulk, chief Canada macro strategist at
TD Securities, said just after the speech.”But it’s more just of the view that this is the environment
we are sitting in as …