To keep the economy on a sustainable path, I expect that it will be appropriate to
remove monetary policy accommodation at a regular but gradual pace — and perhaps a bit faster than the three, one - quarter point increases envisioned for this year in the assessment of appropriate policy from the December 2017 FOMC meeting.
The Fed must be «extraordinarily patient» about
reducing monetary policy accommodation, he said, so the job market can return to the strength it had in 2006, before the financial crisis hit.
The Bank of Canada held its overnight rate at 1.25 percent on March 7th 2018, following a 25bps hike in the previous meeting, saying that while the economic outlook is expected to warrant higher interest rates over time, some
continued monetary policy accommodation will likely be needed to support growth and inflation.
He said economic progress had made the bank more confident that higher interest rates would be required over time, although
some monetary policy accommodation will still be needed.
«This progress reinforces governing council's view that higher interest rates will be warranted over time, although
some monetary policy accommodation will still be needed to keep inflation on target.»
If you believe that the IS curve slopes up, then what the Bank of Canada says about «
monetary policy accommodation» makes sense.
The economic progress we have seen makes us more confident that higher interest rates will be warranted over time, although
some monetary policy accommodation will still be needed.»
As a result, the central bank sees higher interest rates over time, although
some monetary policy accommodation will still be needed to keep inflation on target.