(November 3 – 17:45 ET) – The
Bank of Canada released extracts
from the minutes of its September
23rd board meeting today. They
indicate the Bank may be set to
tighten monetary policy, hiking
interest rates.
In the minutes Governor
Thiessen says, “as the economy
approaches output levels that
are estimated to be close to its
production capacity, monetary
policy will have to be mindful of
the potential for future price
pressures.”
He admits that determining
exactly where the economy will hit
the wall is not an easy task.
There is “a good deal of
uncertainty surrounding the
traditional estimates of
potential output,” he says.
Thiessen says the Bank will
watch a broad collection of
inflation indicators, notably the
growth of monetary aggregates, core
Consumer Price Index inflation
relative to expectations, and other
data.
-IE Staff
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