BoC's Wilkins: Discussed whether gradual approach to raising rates was still appropriate

Below are key quotes, via Reuters, from the Bank of Canada's Senior deputy governor Carolyn Wilkins' recently delivered speech.

• Protectionist measures create risks to the upside for inflation, especially when economy is operating near full capacity.
• Certain trade developments can result in complex trade-offs for monetary policy, notes that protectionist measures can be costly in terms of growth and incomes.
• In weighing these trade-offs, you can be sure that governing council will not lose sight of our primary mission.
• Low and stable inflation will help reduce at least one source of uncertainty for companies and households.
• There are structural and other policies better suited than monetary policy to help manage what would be complex adjustments.
• Higher interest rates will be warranted to achieve inflation target, bank will continue to take gradual approach guided by data.
• Implications of current trade environment dominated governing council's discussions on interest rates ahead of sept 5 announcement.
• Governing council discussed whether gradual approach to raising rates was still appropriate, agreed it is.
• There may be more room to grow without causing inflation than we have built into our forecast.
• Canadian economy is on a solid footing, but feeling some headwinds from trade environment; uncertainty over NAFTA is deterring some businesses from investing.
• Policy rate is still relatively low; most recent data indicate growth should average near potential over next 2 years.
• GDP growth will be volatile for rest of 2018, but still average around 2 pct; temporary factors will likely weigh on Q3 GDP but do not point to weaker underlying momentum.