BOC's Macklem: Forward guidance side effect is that inflation likely above target after exit

  • Comments from Macklem
Macklem

These comments are largely a re-tread from what he said on Monday

  • Lower neutral rate means we are likely to need exceptional forward guidance and QE more often
  • Forward guidance and/or QE can help avoid periods of below-target inflation and high unemployment
  • We conditions warrant we can probe maximum sustainable employment

These guys are still fighting the last battle. It's all about high inflation now.

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