MNI BRIEF: BOC Should Look At Publishing Rate Path- IMF

Canada's central bank should consider publishing an expected path of interest rates to boost the public's understanding of monetary policy, the IMF said Tuesday, also saying in the short run that tight monetary policy is needed to deal with stubborn core inflation.

"Should the incoming data warrant it, the BoC should be ready to hike again or keep the policy rate high for even longer than currently envisaged," the IMF's Article IV statement said. The article generally agreed with the Bank's views inflation could return to the 2% target late next year and said the rate hike earlier this month was "appropriate." (See: MNI INTERVIEW:BOC Hike Is Precursor For More- Laval U's Gordon)

The Bank has taken some IMF advice before on communications, moving this year to publish meeting minutes for the first time, though resistance to publishing a rate path is likely stronger among officials. The IMF also said fiscal policy "should be kept tight."