Tiff Macklem: The role of the G-20 in sustaining the recovery and protecting financial stability Remarks by Mr Tiff Macklem, Senior Deputy Governor of the Bank of Canada, at the FICCI-IBA (Federation of Indian Chambers of Commerce & Industry – Indian Banks’ Association) Conference on “Global Banking: Paradigm Shift”, Mumbai, 24 August 2011.
In fact, the policy rate today is still negative in real terms, that is, once you adjust for inflation. Our estimate of neutral is in a range—currently 2 ½ to 3 ½ per cent. The policy rate will need to rise to neutral to achieve our inflation target.