Looking at continuous softness in wage growth

– We expect inflation to reach our 2 per cent target in the second half of 2018
– Given our recent history with inflation running below target, we continue to be more preoccupied with the downside risks to inflation
– First issue on which Governing Council spent considerable time is around inflation itself
– The second issue that preoccupied Governing Council was the degree of excess capacity in the economy
– The third issue is the continued softness in wage growth in the context of an unemployment rate that is now about the same as it was prior to the global financial crisis
-Could See Economy Generating More Non-Inflationary Growth
– Economy Is Likely To Respond More To Higher Rates At Today’s Debt Levels Than Historically
-NAFTA Risk Is Outside Of BoC Forecast
-Fiscal Policy Is A ‘Variable’ In Our Modeling
-Interpret Data ‘More Intensively’ Than Usual
– Must Be Open, BoC Could Be Surprised In ‘Either Direction’ Relative To Forecast


Cad not impressed , USDCAD hitting 1.2800


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