The Bank of Canada is “prepared to act forcefully” to return inflation to its 2.0% target, it said on Friday Lieutenant Governor Sharon Kozicki, reported Reuters.
Additional statements:
“It is important to be clear that bringing inflation back to the 2% target is our primary focus and unwavering commitment.”
“The pace and size of the rate hikes and the start of the quarter will be active parts of our deliberations on our next decision.”
“Inflation in Canada is too high, labor markets are tight and there is a considerable boost in demand.”
“Households on average appear to be in better financial shape now than they were at the start of our 2017-18 tightening cycle.”
“Household indebtedness is now above pre-pandemic levels and its elevated level remains a major domestic vulnerability.”
“High indebtedness could amplify the impact of rising interest rates and could also worsen the impact of a future shock.”
“A key concern is amplifying price pressures… about 2/3 of the Consumer Price Index components now show inflation above 3%.”
“Persistently high inflation increases the risk that long-term inflation expectations could rise.”
“The invasion of Ukraine is adding to inflationary pressures in Canada and the world…the bank is closely monitoring events and impacts.”
Source: Fx Street
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