Bank of Canada should not raise inflation target – Obstfeld and co-authors

Bank of Canada facade

Canada should not opt to raise its inflation target in a monetary policy review later in 2016, economists at the International Monetary Fund say in a working paper published on September 26.

The team, including chief economist Maurice Obstfeld, note the Bank of Canada has expressed a readiness to try unconventional policies if inflation continues to fall short of the target.

Alongside quantitative easing and negative rates, one option raised in research by the central bank was a higher inflation

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