NAFTA is also a concern according to BOC Wilkins
She adds:
- Bank is also factoring in the rest of economy's performance as it sets policy
- some households may find debt service extremely difficult but overall bank expects economy, consumption to continue to grow
- quarter got off to not the strongest start, in line with expectations; bank is data dependent
- rising stock market volatility in context of strong economy and rising bond yields is to be expected
- asset prices feedthrough to monetary policy transmission mechanism and forecasts, only matters to the extent they are in one direction and large
- often more potential being built in an up cycle than economists put in their projections
- bank looks and market pricing but rarely a source of concern, focuses on right policy to achieve inflation target