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Schembri: Interest-Rate Decisions and Speech Wednesday

schembri: He described it as a vital piece of information for the Bank of Canada as it gauges inflationary pressures and contemplates its interest-rate decisions, according to The Chronicle Herald. However, Schembri also described it as slippery number that can be tricky to pin down, to the point it's hypothetical. Deputy governor Lawrence Schembri mentioned the potential prescriptions in a speech Wednesday that was focused on exploring and demystifying what he called the somewhat abstract notion of potential growth, which provides a reading on what the economy can achieve on a sustainable basis over the long run. One thing about it is apparent it has been on the decline. But that doesn't mean there's a shortage of tools to jack it back up again, he argued. The bank estimates that Canada's annual potential growth will average 1.8 per cent between 2009 and 2021, which is much weaker than the 2.7 per cent average from 1982 to 2008. ( As reported in the news.