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Bank of Canada Governor Stephen Poloz prepares to speak before a parliamentary committee on Parliament Hill in Ottawa on June 6, 2013.
Bank of Canada Governor Stephen Poloz prepares to speak before a parliamentary committee on Parliament Hill in Ottawa on June 6, 2013.
(Blair Gable/Reuters)

Why the Bank of Canada ought to cut rates

The latest Canadian inflation figures inspire descriptions like benign, subdued, tepid and tame. Consumer price inflation remained steady in September at an annual rate of 1.1 per cent. The core price index, which excludes more volatile food and energy costs, also didn’t budge from the previous level of 1.3 per cent. With inflation essentially a non-factor, the conventional wisdom is that the Bank of Canada can afford to leave monetary policy untouched.