Central Banks


More Wilkins: If there is ever a time to get back to normal rates, its now.




Poloz and Wilkins testifies in front of the House of Commons Standing Committee on Finance, in Ottawa

Wilkins:

  • incomes will grow alongside interest rates
  • if there is ever a time to get back to normal as regards interest rates, it’s during this period

Poloz

  • labor shortages are solvable with smart policies
  • Canada world-class cities inexpensive vs global standards
  • neutral emphasis was to convey it as approaching fact
  • Want people to understand 3% rates are a normal thing
  • need to balance risk of going to quickly on rate hikes with risk of going to slowly
  • if we moved to quickly with rate hikes economy will slow below its potential growth rate and that is not what what you want

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