BoC’s Poloz says can not take mechanical approach to policy even though interest rates are likely to move higher over time

Uncertain processes entail upside, downside risks to inflation and monetary policy remains particularly data dependent There is a degree of untapped supply potential in the economy, noting that Canada may be able to see more growth without higher inflation  Labour market has become healthier over the past year but notes slack still remains  If the economy builds more supply than usual it adds to downside risk on inflation, if there is less supply creates upside risk  Repeats plan to remain cautious in considering future adjustments to policy guided by data  (Newswires)