BOC’s Poloz favors applying brakes while nearing inflation target

“When you are driving towards a red spotlight you ease up on the accelerator well before you get there instead of waiting for the last second to stop” – BOC’s Poloz.

This effectively means the BOC would raise rates well before the inflation hits the target. Poloz also said, “if we only watch inflation and reacted to inflation we would never reach our inflation target”.

The comments are likely to strengthen the CAD

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