Poloz explores ‘risk management’ in policy framework
Bank of Canada governor says financial stability impact can be taken into account on occasion
The flexibility in the Bank of Canada's policy framework means it can incorporate the impact of its decisions on financial stability into some interest rate decisions, but it will not "lean against every emerging financial imbalance", governor Stephen Poloz said in Lima, Peru, on October 10.
Poloz explored the idea of risk management in his speech. "Every time we come to a decision, there are a number of potential paths for policy that could be consistent with the inflation goal," he said.
The
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