BOC Poloz: Inflation should be “well into an uptrend” in H1 2018

In a final exclusive interview before its next rate-setting meeting with the German newspaper - Handelsblatt, the BOC Governor Poloz expressed his view on the North American Free Trade Agreement (NAFTA) and hinted at tightening policy.

Key Quotes:

“If we only watched inflation and reacted to inflation, we would never reach our inflation target, we’d always be two years behind in the reaction”

“So we have to look at the rest of our indicators in the models that predict inflation”

Expects inflation should be “well into an uptrend” in the first half of 2018 as the output gap in Canada’s economy closes

“When you are driving towards a red stoplight, you ease up on the accelerator well before you get there instead of waiting for the last second to stop”