Canada faces its own set of economic challenges and its central bank is setting interest rates accordingly, Carolyn Rogers said as the Bank of Canada and U.S. Federal Reserve appear to be charting different paths.
In a speech in Winnipeg Thursday, the Bank of Canada's senior deputy governor touted the advantage of having an independent monetary policy.
While the world is interconnected, Rogers said the Bank of Canada needs to do what's best for Canada, while other central banks do what's best for their countries.
"While we're always thinking globally, we have to act locally," she said. "We must tailor our policy to Canadian circumstances."
Her comments come one day after the central bank held its key interest rate steady for the first time in a year, diverging from the U.S. Federal Reserve, which has signalled more rate hikes are to come.
At its Jan. 25 interest rate decision, the Bank of Canada said it was planning to move to the sidelines, appearing hopeful its rate hikes to date may be sufficient to quash inflation.
In her speech, the senior deputy governor parsed out global and domestic circumstances that caused runaway inflation, noting that the Bank of Canada's rate hikes are geared toward addressing homegrown inflation.
Rogers said what started off as a run-up in prices caused by high commodity prices, a surge in global demand for goods and disrupted supply chains then became a domestic phenomenon as the Canadian economy got overheated.
And while Canada's experience with inflation has a lot in common with other countries, Rogers said "we can also see some differences."
Rogers pointed out some specific differences, noting Canada's inflation rate is the second-lowest in the G7, economic growth has been the strongest since interest rates began to rise, and employment growth has been strong.
At the same time productivity growth is one of the lowest, and Canadian households are some of the most indebted in the G7.
"As global inflationary pressures continue to recede, each country will need to chart its own course to get back to price stability," Rogers said.
Diverging monetary policy between Canada and the U.S. could weaken the Canadian dollar, making imports more expensive.
In a question-and-answer period after her speech, Rogers said there's "no question" that what happens in the U.S. economy has implications for Canada.
"It is true if our dollar depreciates ... that means imports coming into the country are more expensive. That can put upward pressure on inflation," Rogers said.
"If that happens, that will have to get built into our forecast."
Later in a news conference, Rogers said there are some differences between the U.S. and Canadian economies that have implications for each country's monetary policy.
"We are seeing inflationary pressures come down a little more than they're seeing in the U.S.," she said.
Though the central bank expects to hold its interest rate steady, it has made it clear that the pause is conditional on the economic performance and inflation cooling as expected.
On Thursday, Rogers made that point once again.
"If economic developments unfold as we projected and inflation comes down as quickly as we forecast ... then we shouldn't need to raise rates further," Rogers said.
"But if evidence accumulates suggesting inflation may not decline in line with our forecast, we're prepared to do more."
In her speech, Rogers also discussed Wednesday's rate decision, noting that the governing council found a "mixed picture" when evaluating recent economic data.
"Overall, though, things are unfolding broadly in line with our outlook," she said.
Economic growth has slowed noticeably, with the Canadian economy posting no growth in the fourth quarter.
However, Rogers said the labour market is still "very tight."
The Bank of Canada has stressed lately that wage growth, which has been hovering between four to five per cent, isn't compatible with the central bank's two per cent inflation target.
The central bank says the economy would have to see productivity growth to justify that rate of wage growth.
"Labour productivity fell for a third straight quarter, so productivity isn't trending in the right direction so far," Rogers said.
This report by The Canadian Press was first published March 9, 2023.
Donald Trump has said he wouldn't be a dictator 鈥 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
Applause erupted over and over at the Canada Life Centre in Winnipeg Sunday as the son of Murray Sinclair, a former judge, senator and chair of the Truth and Reconciliation Commission into residential schools, spoke about his father.
Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.
A children's book written by British celebrity chef Jamie Oliver has been withdrawn from sale after it was criticized for causing offense to Indigenous Australians.
The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.
A man who was critically injured in a police-involved shooting in Hamilton late Sunday afternoon has died in hospital, says the province鈥檚 police watchdog.
In his column for CTVNews.ca, personal finance contributor Christopher Liew offers a step-by-step guide on how to make the shift from renting to becoming a homeowner, and what you can start doing today to help the process go smoother.
Prime Minister Justin Trudeau announced voters in Cloverdale鈥擫angley City will pick their next member of Parliament on Dec. 16.
Donald Trump's Mar-a-Lago club has been brimming in the last 48 hours with two kinds of people: those angling for a job in the president-elect鈥檚 incoming administration, and those trying to influence him into hiring their picks for the top spots.
The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.
A government-funded report released to 麻豆影视 highlights 'systemic racism' against dozens of Black executives within the federal public service, including allegations of abuse, violence and harassment that, in some instances, led to suicide.
A man who was critically injured in a police-involved shooting in Hamilton late Sunday afternoon has died in hospital, says the province鈥檚 police watchdog.
Police in Newfoundland say a man was electrocuted Saturday by a downed power wire about 10 kilometres north of St. John's, N.L.
Applause erupted over and over at the Canada Life Centre in Winnipeg Sunday as the son of Murray Sinclair, a former judge, senator and chair of the Truth and Reconciliation Commission into residential schools, spoke about his father.
Nova Scotia's New Democratic Party says a candidate criticized by the Centre for Israel and Jewish Affairs for "troubling" and "damaging" social media posts is no longer running for the party in the Nov. 26 general election.
Donald Trump's Mar-a-Lago club has been brimming in the last 48 hours with two kinds of people: those angling for a job in the president-elect鈥檚 incoming administration, and those trying to influence him into hiring their picks for the top spots.
Much of the U.S. federal workforce is on edge and bracing itself for the likelihood its ranks will be purged when President-elect Donald Trump takes office.
Donald Trump has said he wouldn't be a dictator 鈥 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
Thousands of Spaniards marched in the eastern city of Valencia on Saturday to demand the resignation of the regional president in charge of the emergency response to last week's catastrophic floods that left more than 200 dead and others missing.
Paris police said Sunday that 4,000 officers and 1,600 stadium staff will be deployed for a France-Israel soccer match to ensure security in and around the stadium and on public transportation a week after violence against Israeli fans in Amsterdam.
Gunmen open fired in a bar in central Mexico killing 10 people and injuring seven, a local official said.
Murray Sinclair鈥檚 family members say the late justice and senator has been laid to rest according to his wishes.
Prime Minister Justin Trudeau announced voters in Cloverdale鈥擫angley City will pick their next member of Parliament on Dec. 16.
Canada's ambassador to the United States 鈥 and co-lead of the federal government's Team Canada war room 鈥 says U.S. president-elect Donald Trump has a different understanding of the bilateral relationship than he did during his first term in the White House.
Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.
Just five more minutes of exercise doesn鈥檛 sound so bad, right? Especially when such a small amount may improve your blood pressure, according to a new study.
Researchers say taking a peek inside a person's brain is as difficult as understanding the universe or discovering the ocean in its entirety.
Bernadett 'Bett'鈥 Szab贸, a 19-year-old Hungarian sex worker, was murdered in the Dutch capital in 2009. Now, more than 15 years after her death, police are hoping to uncover new information about her killing.
In 1916, Harold Wrong plucked a flower from the fields of Somme, France and tucked it into a letter he mailed home to Toronto. For decades, the type of flower sent remained a mystery.
Elwood Edwards, who voiced America Online鈥檚 ever-present 'You鈥檝e got mail' greeting, has died Tuesday at his home in New Bern, N. C. He was 74.
Taylor Swift came out on top at the 2024 MTV EMAs on Sunday, walking away with best artist, best U.S. act, best live act and best video for 鈥淔ortnight鈥 (featuring Post Malone).
Chu shared on his Instagram Stories that he and his wife Kristin Hodge welcomed their fifth child on Saturday, writing that he 鈥渃an鈥檛 believe this happened while the movie is premiering.鈥
On Thursday morning, Dave Penny officially ended a suggested hundred-day isolation period that followed his diagnosis and stem cell treatment for non-Hodgkin's Lymphoma. On Thursday night, Penny returned to a stage at a downtown St. John's bar, regaling a small crowd with songs and stories with a distinctive Newfoundland flair.
In his column for CTVNews.ca, personal finance contributor Christopher Liew offers a step-by-step guide on how to make the shift from renting to becoming a homeowner, and what you can start doing today to help the process go smoother.
Shannon Davidson was let go from her executive role at a marketing firm last year after a merger led to cuts. She knew she wasn't done with her career yet, but finding her next workplace in her mid-50s was a daunting prospect.
Bitcoin on Sunday hit a new record above US$80,000. The world鈥檚 largest cryptocurrency surged in the run-up to Tuesday鈥檚 US presidential election, rose sharply immediately on election night after it became clear Donald Trump would win and has continued rising in the days since his victory.
Doom spending, or the practice of spending money to soothe fears about broader issues like politics or the economy, shows up everywhere from YouTube and TikTok videos to Reddit to personal finance discussions and data in surveys.
A Vancouver designer is making waves in the architectural world with an outdoor modular building created to address the city鈥檚 unrelenting housing crisis.
A rare letter signed by three of the U.S. Founding Fathers of the United States is going on sale, and is expected to fetch up to US$1 million when it goes under the hammer next week.\
The Edmonton Oilers may have found the break they were looking for.
No. 15 LSU has been criticized for unveiling a live caged tiger in its stadium for the first time in almost a decade before they were routed 42-13 by No. 11 Alabama in their SEC showdown.
A Maui man who lost a part of his leg to a shark bite is now out of the hospital and thanking those who saved his life and helped him recover.
Select Porsche owners in Canada have been told to stop driving their cars immediately and to seek repairs after an issue was identified that could cause wheels to separate from vehicles.
A driver's trip from London, Ont. to Ottawa to visit their girlfriend ended in a traffic stop for speeding on Highway 417, according to police.
Recall notices have been issued for some Volkswagen models from 2006 to 2019 for airbag safety issues.
A congestion crisis, a traffic nightmare, or unrelenting gridlock -- whatever you call it, most agree that Toronto has a congestion problem. To alleviate some of the gridlock, the Ontario government has announced it plans to remove bike lanes from three major roadways.
For the second year in a row, the 鈥楪ift-a-Family鈥 campaign is hoping to make the holidays happier for children and families in need throughout Barrie.
Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
A group of women in Chester, N.S., has been busy on the weekends making quilts 鈥 not for themselves, but for those in need.
A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.
Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.
A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.
Weather watchers were treated to an exceptionally rare display on Friday evening as rare cloud formations filled Vancouver skies.
For some shoppers it was Nov. 1, but for others the first hints of Christmas - saccharine treats, festive-fragranced candles and gaudily wrapped gift sets - were being noticed in stores long before the final Halloween decor had been cleared.
Thousands of people are expected to gather in downtown Vancouver on Monday to observe the city鈥檚 100th Remembrance Day ceremony.
A man who was critically injured in a police-involved shooting in Hamilton late Sunday afternoon has died in hospital, says the province鈥檚 police watchdog.
Toronto is expected to see an economic boost to the tune of nearly $300 million thanks to Taylor Swift鈥檚 upcoming Eras Tour, which will be making a stop in Canada鈥檚 largest city for a six-show run later this month.
A man is wanted after allegedly presenting himself as a rideshare driver then sexually assaulting a woman from Brampton late last week, say police.
A pair of 105-mm howitzers bark constantly as they turn plywood tank targets into kindling kilometres away on the windswept landscape of one of Canada's largest military bases.
Two semis were among the vehicles involved in a multi-vehicle crash that brought westbound traffic along Stoney Trail Northwest to a standstill on Sunday.
More than 700 people danced, ate, and sang to celebrate Diwali Saturday night at the Genesis Centre in northeast Calgary.
An Ottawa boy with a rare disease will be getting the chance to see Taylor Swift in concert after the winner and organizers of an auction held on his behalf gifted the tickets to him.
CTVNewsOttawa.ca looks at Remembrance Day ceremonies in Ottawa.
After months of controversy surrounding a dog park in Ottawa's west end, a solution has been reached to divide the park in half.
A First Nation near Quebec City says the provincial government and Quebec鈥檚 hydro utility have ignored their constitutional duty to consult about four planned wind projects south of the Saint Lawrence River.
The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.
With fewer interments and rising maintenance fees, the money for Canada's largest military cemetery will run out in three to four years.
Monday is Remembrance Day, a time to honour armed forces members who have died in the line of duty.
Boasting 2,300 square metres of skating space at its new location, Edmonton's Rollers Roller Rink believes it is the largest in Canada.
A woman is dead after a driver crashed a truck through a Boston Pizza in Fort McMurray late Saturday morning.
Here鈥檚 what鈥檚 opened and closed across the Maritimes on Remembrance Day.
Police in Newfoundland say a man was electrocuted Saturday by a downed power wire about 10 kilometres north of St. John's, N.L.
As Nova Scotia politicians make their fall election promises, Julie Leggett is urging them to commit to helping people on income assistance stay cool during heat waves.
A pillar in Canada鈥檚 history was honoured in Winnipeg Sunday afternoon, with thousands showing up to pay tribute to the life and legacy of the late Murray Sinclair.
Winnipeg police have identified two men involved in a stabbing incident earlier this week.
The Winnipeg Blue Bombers whipped the Saskatchewan Roughriders 38-22 in Saturday's CFL West Division final to earn their fifth consecutive trip to the Grey Cup.
Regina author Valerie Crowther is celebrating the release of her book 鈥榃ar Letters: Linking Lives in the Second World War.鈥
It was a somber day at Mosaic Stadium as members of the Saskatchewan Roughriders officially cleaned out their stalls and closed the book on the 2024 season.
Twilight Tech Arcade, an entertainment location specializing in retro gaming, is closing its doors for the foreseeable future.
A man has been charged after a stabbing at an apartment building in Kitchener.
The Guelph Police Service is putting out a warning after two deaths in the downtown area.
Two new tributes to Canada鈥檚 veterans have been unveiled at the Elmira Cenotaph.
Saskatchewan RCMP are searching for a suspect after a man was seriously injured in a farm-related incident in Montreal Lake.
It was a somber day at Mosaic Stadium as members of the Saskatchewan Roughriders officially cleaned out their stalls and closed the book on the 2024 season.
The Regina Rams claimed the Hardy Cup after a hard fought battle against the Saskatoon Huskies 19-14 on Saturday in the first all Saskatchewan U-Sports western conference final since 2002.
CTVNewsNorthernOntario.ca is livestreaming the annual Remembrance Day ceremony at the Sudbury Community Arena starting Monday at 10:30 a.m.
Donald Trump has said he wouldn't be a dictator 鈥 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.
The events will start at 10:15 a.m. with a parade that forms up in front of the Delta London Armories, marches east on Dundas Street and turns north onto Waterloo Street to Dufferin Avenue, the west to the Cenotaph.
Emergency crews responded to the scene on Road 68/Highway 2 east of Thamesford around 7 p.m.
On Friday, the Sarnia Police Service (SPS) received a report of an alleged abduction in the area of Kathleen Avenue and Walnut Avenue.
A group of former NHL players faced off against York Regional Police officers in Newmarket Sunday afternoon to raise funds for Special Olympics programs across the province.
A driver is facing multiple charges after a multi-vehicle collision on Highway 400 early Sunday morning.
The agreed statement of facts was read to the court on Friday in the case of Alex Williams, the 24-year-old jail guard charged last fall with smuggling cannabis and tobacco into Central North Correctional Centre in Penetanguishene.
For Gene Lotz, the spark of curiosity to delve into the history of those who served in war only began when the answers became difficult to find.
A Tilbury race car driver and his team are partnering with St. Clair College to give students a chance to see their design circle a racetrack. Driver Nathaniel Greenaway said the competition challenged third-year graphic design students to draft a wrap for his car ahead of next season.
One person has been arrested after Chatham-Kent Police Service (CKPS) received multiple complaints about an alleged drunk driver.
Environment Canada says heavy rain and winds could cause power outages on Vancouver Island as an "intense" storm system is set to hit the B.C. coast Sunday.
Six deer were struck by vehicles in six different locations in a six-hour period on B.C. highways on Saturday, according to the transportation ministry.
The union for locked-out port workers in British Columbia says the BC Maritime Employers Association cut off talks in less than an hour Saturday, refusing to budge on a final offer that the union has so far rejected.
The emergency department at South Okanagan General Hospital in Oliver, B.C., will be closed for 31 hours this weekend, the second such closure in a week and the third since the start of November.
Police in Kamloops, B.C., are reminding parents and guardians to check their children's Halloween candy after receiving a report of a mother finding a razor blade in one of her daughter's treats.
More than two years after Alannah Brown and Douglas Barker were found dead north of Penticton, police are asking for help identifying a vehicle they believe was associated with the crime.
The Southern Alberta Recreation Association is officially announcing the Town of Taber as next year鈥檚 host for the Southern Alberta Summer Games.
The Lethbridge Hurricanes broke open a close game with three goals in the first two minutes of the third period as they defeated the Warriors 7-3 in a game played Friday night in Moose Jaw.
There might not a lot snow just yet, but many southern Albertans are still itching to get outdoors.
Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.
Mayors of the five largest cities in northern Ontario met in North Bay the last two days to discuss a range of critical issues impacting their cities and the region.
Residents in the Sault expressed concerns ranging from vandalism to privacy invasions during recent consultations on the city's plan to install automated speed enforcement cameras.
Police in Newfoundland say a man was electrocuted Saturday by a downed power wire about 10 kilometres north of St. John's, N.L.
On Thursday morning, Dave Penny officially ended a suggested hundred-day isolation period that followed his diagnosis and stem cell treatment for non-Hodgkin's Lymphoma. On Thursday night, Penny returned to a stage at a downtown St. John's bar, regaling a small crowd with songs and stories with a distinctive Newfoundland flair.
A Memorial University scientist says the mysterious white blobs washing up on Newfoundland beaches are actually gobs of plastic -- and they need to be cleaned up.
The Shopping Trends team is independent of the journalists at 麻豆影视. We may earn a commission when you use our links to shop.聽Read about us.
