Uncertainty talks lower expectations, says BoC report.

January 11, 2024
1 min read

TLDR: Communicating uncertainty over the inflation outlook can help to curb inflation expectations, according to a working paper published by the Bank of Canada. The paper found that all types of information about inflation are effective in managing inflation expectations, with information about outlooks being the most effective. However, the downside to communicating uncertainty is its impact on consumer and business decisions.

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