Deputy Governor of the Bank of Canada Lawrence Schembri spoke on Tuesday, in the following Q&A session he said on timing of a BoC rate hike:
- "There's a lot of uncertainty about the timing of the closing of the output gap, so one should be careful not assuming it's necessarily going to be the second quarter. It's a range of six months - that's our best estimate"
Schembri said knowing exactly when the output gap has closed is becoming more difficult. He said the relationship between labour market conditions and inflation has weakened and become harder to measure.
More here at the Reuters report.
