The Bank of Canada’s approach to monetary policy has become particularly data dependent, because of significant unknowns around the inflation outlook as the Canadian economy nears its potential, Governor Stephen S. Poloz said today. In a speech to the St. John’s Board of Trade, Governor Poloz reviewed the complex economic adjustments to the 2014 oil price shock, and the progress that has been made since. The Bank’s decision to ease monetary policy in 2015 helped facilitate this progress, and “we could see by the beginning of summer that the economy’s adjustments to lower oil prices were essentially complete,” the ... (full story)