BOC's Wilkins: Must Reflect On All Data Possible Before Acting

By Yali N'Diaye

     OTTAWA (MNI) - Bank of Canada Senior Deputy Governor Carolyn Wilkins told

reporters Thursday that only moving policy rates when markets expect it won't

produce the best policy outcome.

     It is important to reflect on all the data possible before an interest rate

decision is taken, she told reporters when asked whether the BOC's meetings were

"live".

     Wilkins spoke with reporters following a day-long workshop on monetary

policy framework issues.

     When the BOC raised its overnight rate target by 25 basis points to 1.0% on

September 6, it surprised many analysts who had expected such move to occur in

October.

     The BOC was then criticized for not communicating for weeks leading up to

its decision, which Wilkins refused to acknowledge as a mistake, adding the BOC

feeds off of market information for its own analysis.

     That being said, she indicated the BOC will continue to work on ways to

interact to make it easier to understand its thinking.

     For one thing, she stressed monetary policy is forward looking and if

policy rates were based on where inflation is today, "you'll make a mistake."

--MNI Ottawa Bureau; +1 613 869-0916; email: yali.ndiaye@marketnews.com