BOC Macklem April 13 2022
  • We need to ensure inflation expectations remain moored and that was part of our decision today
  • We have see a very-impressive recovery in the economy
  • The labour market has more-than fully recovered
  • The latest budget isn't incorporated into our forecast but spending isn't on a scale that would materially impact our estimates
  • Roughly 40% of the bonds on our balance sheet will mature within 2 years
  • "At this time" we don't see the need to actively sell bonds
  • Rogers: Household balance sheets have improved over the pandemic
  • Rogers: We think that consumers can withstand higher rates
  • Rogers: There is a stronger interest in investing from businesses
  • We haven't seen much strengthening of the Canadian dollar and that has some implications
  • We're not getting a rise this time in the Canadian dollar along with oil
  • I'll leave it to markets to determine the value of the Canadian dollar
  • We're not getting as much as an investment response from the oilpatch as historically
  • We need to be humble about the path of rates once we get closer to neutral
  • Prices are too high; more than two-thirds of CPI components are rising faster than 3%
  • 50 bps hike sends the message that mon pol needs to be normalized relatively quickly
  • We're not on auto-pilot
Bank of Canada Carolyn Rogers