BoC Poloz: Monetary policy remains particularly data-dependent

Here are some of the key highlights from the prepared text of BoC Governor Stephen Poloz’s scheduled speech in Ontario:

   •  There is degree of untapped supply potential in economy
   •  Canada may be able to have more growth without higher inflation
   •  Labor market has become good deal healthier over past year but some slack still remaining 
   •  Expect increased investment, labor market churn to create more supply through higher productivity, employment
   •  Uncertain processes entail upside, downside risks to inflation
   •  Monetary policy remains particularly data-dependent 
   •  BoC cannot take mechanical approach to policy, even though interest rates likely to move higher over time
   •  If economy builds more supply than usual, puts downside risk on inflation; if less supply, creates upside risk to inflation
   •  Boc’s job to balance risk

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