BoC’s Rogers: Policy interest rate will need to rise further
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Bank of Canada (BoC) Senior Deputy Governor Carolyn Rogers reiterated on Thursday that the BoC continues to judge that the policy rate will need to rise further, as reported by Reuters.
“Recent data show inflationary pressures in Canada are increasingly broad-based.”
“Getting inflation all the way back down to 2% will take some time, there could be bumps along the way.”
“Governing Council discussed the ongoing risk that inflation becomes entrenched.”
“There is a risk consumer spending has more momentum than we expect, making inflation more persistent.”
“Demand continues to outstrip supply in many parts of the Canadian economy and short-term inflation expectations remain high.”
“We remain resolute in our goal to re-establish low, stable and predictable inflation.”
“Because we are in a period of excess demand we need a period of lower growth to balance things out; the reduced spending that results will ultimately lead to lower inflation.”
“Bank will be keeping a close eye on how global developments and commodity prices affect exports, business investment and pricing decisions.”
“Bank will watch to see if supply disruptions are improving and labor shortages are subsiding.”
“Bank’s decisions now and the ones taken in recent months will take up to two years to have their full effect on inflation.”
USD/CAD edged slightly lower after these comments and was last seen posting small daily losses at 1.3115.
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