“After leaving the Bank’s key rate unchanged but insisting the next move would be up the Governor said three factors would determine how long the rate would be on hold”
“First, the economy needs to grow more than two percentage points.”
“ Secondly, you need to see a continuation of what is becoming a positive evolution of household debt and aspects of the housing market…..and also inflation picking up a little bit.” Source - The Financial Post - Canada
With inflation in Canada slowing to 1% against a target of 2% perhaps Mark Carney can afford to be sanguine in his current role. Meanwhile back in Blighty Mervyn King admitted inflation here had been above his own 2% target for 5 years now.
In June Mark Carney takes over from Mervyn King. What will he make of the housing market, interest rates and inflation on this side of the Pond?