The Bank of Canada is preparing the most thorough review of its inflation targeting mandate in three decades to gauge whether it would be better off switching to a new framework, the central bank’s No. 2 official said. In a speech Tuesday in Montreal, Senior Deputy Governor Carolyn Wilkins said the central bank will do a “side-by-side assessment” of alternatives to its inflation targeting regime. That framework is facing a serious challenge from historically low neutral rates, which may diminish the bank’s ability to combat future downturns and encourages households to take on excessive risk. “There is no doubt that ... (full story)