Canada’s central bank will probably signal today it’s staying focused on a weak economy that’s restraining price increases for most goods rather than surging energy costs that it regards as transitory.
Bank of Canada Deputy Governor John Murray said investor reaction to comments about tapering of monetary stimulus by the U.S. Federal Reserve may have been overdone because there are signs the process will be smooth.
The announcement by John Murray that he’ll retire from the Bank of Canada next year leaves Governor Stephen Poloz facing the prospect of having two new faces on the bank’s six-member rate-setting panel less than one year into his tenure.
Bank of Canada Deputy Governor John Murray said that even though currencies and other assets have periods where they overshoot fundamental values, the relationship between exchange rates and retail prices is working as it should.
Bank of Canada Deputy Governor John Murray said it’s a misconception that policy makers must maintain interest rates at a “neutral” level when inflation is near the central bank’s target and the economy is close to full output.
Independent actions by developed and emerging countries have failed to maximize global economic growth, Bank of Canada Deputy Governor John Murray said, making reference to a Beatles song to suggest a way forward.