June 28 (Reuters) - Interest rate cuts made in 2015 have done their job and the Bank of Canada needs to consider its options as excess capacity is used up, Bank of Canada Governor Stephen Poloz said in a CNBC interview in Europe.
Poloz said Canada had unexpectedly strong growth in the first quarter and while the central bank expects growth to slow moderately, it will not slow down dramatically.
"It does look as though those cuts have done their job. But we're just approaching a new interest rate decision so I don't want to prejudge," he said in the interview.
"But certainly we need to be at least considering that whole situation now that the capacity excess capacity is being used up steadily."
The Bank of Canada cut rates twice in 2015 to counter the effects of an oil price shock that sideswiped the Canadian economy. In recent weeks top policymakers have shifted to a more hawkish stance, and many economists now expect a rate hike before the end of the year. (Reporting by Andrea Hopkins; Editing by Chizu Nomiyama)