- Source: Bank of Canada to keep inflation target, shun big strategy shift – Reuters
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Source: Bank of Canada to keep inflation target, shun big strategy shift – Reuters
Following the Bank of Canada (BOC) status-quo on Wednesday, Reuters’ quote anonymous source to hint at a steady monetary policy on early Friday morning in Asia, as the central bank and finance ministry review the inflation target, which expires at year-end, every five years.
“The Bank of Canada will leave its inflation target at 2% in a framework renewal, shunning a major shift in monetary policy strategy similar to the one adopted by the U.S. Federal Reserve last year,” per Reuters.
Key quotes
The upcoming announcement will be a very clear reaffirmation of the centrality of the inflation target.
But it's not a photocopy of last time. There's a little bit of updating to reflect what the bank is already doing - some updating of the language to reflect the consideration the bank is already giving to employment factors.
Inflation and affordability were ‘real concerns’ ensuring that the bank continues to be able to tackle these issues is first and foremost the goal.
Earlier on Thursday deputy governor Toni Gravelle said the bank was concerned the factors fueling price increases could last longer than expected, leading to more persistent inflation.
Read: BoC's Gravelle: Concerns over inflation are heightened to the upside much more than usual
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