Dave is probably correct when he writes : “The strengthening and broadening growth is expected to push inflation higher; but until the central bank is convinced that is happening, interest rates aren’t going anywhere.” However, this is a reflection of the dysfunctional decisions made in the 2016 renewal agreement; it is delusional to say, as Dave does, that “inflation is nowhere to be seen”. The 2016 renewal agreement itself acknowledged that it was hiking the target rate of inflation; due to reductions in measurement bias of the CPI, it should have been lowered to 2.0%; not doing so amounted to an easing of monetary policy. The Bank of Canada is the only G20 central bank that targets an inflation indicator that includes mortgage interest costs. The CPI excluding mortgage interest costs had an inflation rate of 1.8% in April 2017. Since 2011, even this series no longer excludes all mortgage interest costs. An index that did would have an inflation rate in excess of 1.8%.