BoC’s Poloz: Policy rate will need to rise to neutral to achieve our inflation target

Below are key highlights from the opening statement delivered by the Bank of Canada Governor Stephen Poloz before the  House of Commons standing committee on finance.

• Outlook remains subject to important risks and uncertainties.
• The US-China trade issue represents a two-sided risk for Canadian monetary policy.  
• While financial system vulnerabilities are still elevated, the fact that they have stabilized and edged down in a number of respects is positive.
• The policy rate will need to rise to neutral to achieve our inflation target.  
• That said, the appropriate pace of increases will depend on our assessment at each fixed announcement date of how the outlook for inflation and related risks are evolving.  
• We will also pay close attention to global trade policy developments and their implications for the inflation outlook.