The Bank of Canada cannot afford to wait any longer to tighten monetary policy. Whether they will or not next week will further inform the composition of risks overhanging the outlook as I’ve never seen that message being communicated as clearly by businesses and households as it was in this morning’s updated surveys (here and here). The BoC should hike next week by taking a page from the RBNZ’s “least regrets” approach to the choices at hand. Before elaborating, here’s what the surveys indicated. Inflation Expectations: Chart 1 shows that an all-time high of 67% of businesses expect inflation to cruise above 3% over ... (full story)