Bank of Canada Governor Stephen Poloz said in a speech that the economic models suggested the economy is “operating essentially right around capacity”. Still, “there is a great deal of uncertainty about the state of the economy and the prospects for growth and inflation.”
But at the same time, he emphasized that the central bank cannot operate monetary policy “mechanically”, but policy “becomes a matter of risk management”. And, “being uncertain about the future does not justify inaction.”
Poloz said “today, we continue to judge that higher interest rates will be warranted to achieve our inflation target.” And, “the Bank will continue to follow a gradual approach to raising interest rates, and remain dependent on incoming data and other sources of information to guide our decisions.”
His full speech on “Technological Disruption and Opportunity“. And video below.
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