Navigating High Inflation

In Economics & International Trade by CECAdmin

On June 1, the Bank of Canada decided to increase its policy interest rate by half a percentage point. Speaking the next day, Deputy Governor Paul Beaudry explains why inflation has been higher than expected and what we are doing to get it back to our 2% target.

Our policy rate decision

On June 1, the Bank of Canada increased its target for the overnight rate by half a percentage point to 1.5%. The Bank is also continuing its policy of quantitative tightening.

Economic update since April

The Canadian economy has recovered quickly from the effects of the COVID-19 pandemic. The rebound has been stronger and faster than we anticipated. Wage growth is back to pre-pandemic levels, and unemployment is at a record low. We expect these trends to continue.

But high inflation is squeezing budgets for families and increasing costs for businesses. And inflation will remain high in the coming months. This is painful for everyone, especially those on fixed or low incomes…. read more by following this link: