Bank of Canada head: inflation could return to target more slowly

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Bank of Canada head: inflation could return to target more slowly
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The Bank of Canada's policy framework is flexible enough to allow the inflation rate to climb back up to the bank's 2% target more slowly than on average, Governor Stephen Poloz said on Monday.

OTTAWA - The Bank of Canada’s policy framework is flexible enough to allow the inflation rate to climb back up to the bank’s 2% target more slowly than on average, Governor Stephen Poloz said on Monday.

The comments by Poloz, whose successor Tiff Macklem takes over on June 3, marked the second time in less than a week that he has made clear current record low interest rates were unlikely to increase any time soon. “Our policy framework does give us flexibility in the time it takes to get inflation back to target which allows us to make tactical decisions to avoid unintentionally making financial stability concerns worse,” he added.

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