Bank of Canada admits failure in clearly communicating pandemic policies and inflation forecasts.

The Bank of Canada's internal review reveals it fell short in clearly communicating its pandemic-related measures, particularly regarding the exit strategy from extraordinary actions. The bank underestimated the inflation strength in 2021 and 2022 and plans to improve future communication, especially around large-scale asset purchases and forward guidance on interest rates. The review also highlighted several factors contributing to inflation, including the pandemic's unique impacts, Russia's invasion of Ukraine, and changes in consumer behavior.

2 months ago
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