Wilkins kicks off the BOC press conference
- We do not know how NAFTA trade talks will conclude
- There are a wide range of possible NAFTA outcomes, we will be ready for any outcome
- Wages could be less sensitive to pressure in labor market, given global competitive pressures
- Canadian core CPI behaving as expected
- Raising rates too quickly risks stalling expansion
- Raising rates too slowly risks CPI buildup
- Inflation was a 'bit stronger' than anticipated in October
- We expect 'a bit of a dip' in inflation in the near future
- In big picture, we expect inflation around 2% over projection horizon
- Repeats that BOC will remain cautious
Every second word from Wilkins is about NAFTA, which says a lot about what they're worried about.