Comment from Schembri

Here's Bank of Canada Deputy Governor Lawrence Schembri today in a video conference:

"Maybe there's an opportunity to overshoot the target a little bit or tolerate an overshoot if we want to be aggressive in reducing the risk of being at the effective lower bound," Schembri said. "We might be willing to tolerate a small overshoot or, like the Fed has done, actually aim for an overshoot. And that's a question we are pondering right now."

Maybe I'm reading in a bit too much, but that doesn't sound like a guy who is gung-ho to mirror the Fed's new policy.

The implications are important because if the Fed actually buckles down and lets inflation run hot, the BOC could start on a hiking cycle first, even with a dimmer inflation outlook. Practically, the BOC would hate to do that because of the CAD effects but it's something to ponder.