Why the Bank of Canada is keeping close tabs on the oil-price gap

Just because the Bank of Canada hasn’t altered interest rates for more than two years doesn’t mean policy makers have been idle.

With little room to manoeuvre on policy, Governor Mark Carney and his deputies have been conducting something of a stress test on the Canadian economy. Their speeches, interest-rate announcements, and quarterly reports have become the most important sources of insight into Canada’s economic strengths – and more importantly, its weaknesses.

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