BoC's Poloz: Inflation will be sustainably at target around mid-2018

BoC's Governor Stephen Poloz is crossing the wires, via Reuters, noting that current major models provide little insight into forces behind financial crisis or behavior since crisis.

Key headlines (via Reuters):

• Current economic models performing well, but recent experience points to shortcomings that need to be addressed
• Investing in next generation of economic models is one of bank's top priorities
• As models deliver only "approximation of the truth", monetary policy is not a mechanical exercise
• Bank begins deliberations with policy path recommended by models but is always mindful of the uncertainties
• Aftermath of financial crisis has left Canadian economy with persistent excess capacity, inflation in lower half of target range