Summary of BoC’s December 6 meeting showed members collectively agreed “the likelihood that monetary policy was sufficiently restrictive to achieve the inflation target had increased.”
However, members also unanimously agreed that “risks to the inflation outlook remained.” Hence, BoC did not rule out the possibility of further interest rate hikes.
To effectively assess underlying inflationary pressures, BoC members agreed to focus on several key economic indicators. These include the balance of supply and demand in the economy, wage growth, corporate pricing behavior, and inflation expectations.
It’s clarified that while these indicators are not intermediate targets, they “provided helpful information on where inflation is headed.”
