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Incoming Bank of Canada governor Stephen Poloz smiles during a news conference announcing his appointment in Ottawa May 2, 2013.
Incoming Bank of Canada governor Stephen Poloz smiles during a news conference announcing his appointment in Ottawa May 2, 2013.
(CHRIS WATTIE/REUTERS)

Next up for Bank of Canada: the dreaded spectre of deflation

Was Mark Carney’s love-in with the Canadian economy premature?

In his farewell speech last week as Bank of Canada Governor before moving to the Bank of England, Mr. Carney declared “Canada is working” and pointed with pride to the bank’s success in keeping inflation anchored around the 2 per cent range, which allowed it to be the only G7 central bank not to engage in quantitative easing after the credit crisis. We wish Mr. Carney well in his new gig, but it may be premature to bronze his legacy just yet.