Bank of Canada Governor Stephen Poloz speaking on Saturday in Washington to reporters

Said BoC has a 1 to 3% range for inflation and does not mechanically raise interest rates when inflation goes above 2% target

  • "What I don't want is for people to be spending this entire year asking me what I'm up to because inflation is above target,
  • You need once in a while to remind people that there's a range and that's okay, the policy allows for this. We're not violating our target in some way."

via Bloomberg, more at the link

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So, if you're going to buy CAD with yer ears pinned back 'cause of expectations of an imminient Bank of Canada rate hike with >2% inflation .... well, you might want to reconsider.

An old pic of Polly