Poloz and Wilkins answer questions
Poloz said temporary factors have been keeping inflation down and the BOC is confident of it and that the BOC is targeting inflation in 18-24 months.
- Wilkins: Autos and electricity give us a 'pretty convincing' explanation for low inflation
- Rising debts may mean the economy may behave differently to higher rates
- Has no doubt interest rates will be higher over time but not on a predetermined path
- Export data more recently has been encouraging
- Broader economic growth is a big factor for the hike
- There's a reasonable expectations that inflation will be on target in a year
- Investment uncertainty is fading, companies are acting despite US, NAFTA and other uncertainty
- We were disappointed in Q1 exports but recent data more encouraging
- Our forecasts for exports and investment are very, very prudent
- The next phase after the output gap is closed is highly uncertain
