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