The Globe and Mail reports in its Friday edition that Bank of Canada governor Stephen Poloz says the next monetary policy report (MPR) in October will delve into where the "new normal" for interest rates will be. The Globe's David Parkinson writes that Mr. Poloz says the normalized or "neutral" level for rates will be lower than the previous historical norm. The Globe pegs the historical norm at 4 per cent. Mr. Poloz, however, was mum on what a normalized interest rate would be, saying only that the rate will be announced at the next MPR. Mr. Parkinson notes the theme across the developed-world economies is that growth potential is no longer what it once was. Unless Canada can accelerate labour productivity growth (something that has proven elusive) to make up for the labour force slowdown, this means less economic growth potential. Mr. Parkinson notes the slower growth that leads to lower neutral rates will also mean slower growth in incomes. So while borrowing may stay cheap, consumer capacity to service more debt will be contained, too, explains The Globe. It implies a long-term headwind for savings, as a long-term lower rate environment will limit returns on investments.