BOC’s Wilkins: Fine balance between moving too quickly or slowly on rates

Comments from Bank of Canada senior deputy Caroline Wilkins

• There may be a case for taking longer to bring inflation back to target than usual. Six to eight quarters in some situations
• Moving too quickly on rates could have outsized effects, given high levels of household indebtedness
• Moving too slowly could allow more financial vulnerabilities to build
• Interest rates are a blunt too, difficult to use for financial stability goals
• Bank is concerned about cyber risk and rapid pace of financial innovation
• Watch the speech here.
• Full text

No real comments on the current outlook here but if you read between the lines, it’s dovish because it highlights some of the reasons the BOC will move cautiously on rates.

Update: Wilkins will take questions at the end.