Bank of Canada deputy governor Wilkins comments hitting the wires ... not as much impact as a North Korea missile test though ;-)
- Says inflation is at lower end of target but there are temporary factors and "we are forward looking"
- Our models aren't perfect but have been helpful enough to keep us in the ballpark
- Inflation targeting is forward-looking, if you make decisions based on where inflation is today "you will make a mistake"
- With any central bank there will be incidents where market participants are surprised by bank decisions
- Does not disagree that people need to understand how bank thinks and what factors we take into account, repetition in some instances is useful
- Eight policy meetings a year provides us with right timing to act, so in that sense "every meeting is live"
- Only moving rates when everyone expects it would not lead to good policy outcomes
- "Completely open" to looking at sensible alternatives to inflation target; beauty of aiming for 2 pct is people know what we are aiming at
Little response from CAD, up a few tics.
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more to come
