MNI BRIEF: BOC Says Mulling Fed Style Inflation Overshoot Goal

Bank of Canada Deputy Governor Larry Schembri said Wednesday the central bank is considering the merits of a goal to modestly overshoot its inflation target, similar to what the Federal Reserve adopted last year.

That is one of several options the BOC is looking at this year before a scheduled renewal of an agreement on its inflation mandate with the government, which takes place every five years. The current goal of 2% inflation with some flexibility around meeting that target, which has been renewed several times, is being studied against a dual mandate, a price level target, and a GDP target, he said.

Schembri also reiterated the BOC doesn't see any need for negative interest rates.