Bank of Canada Beaudry: Important to stay vigilant on inflation despite pain of high rates

Bank of Canada Bank of Canada The Bank of Canada (BOC) is the central bank of Canada. It was created in 1934 and is responsible for implementing monetary policy in the country, issuing currency, and promoting a safe and stable financial system.The Bank's main role is to "promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act. This includes maintaining the stability of the financial system, promoting a sound and efficient financial system, and fostering monetary conditions that will preser The Bank of Canada (BOC) is the central bank of Canada. It was created in 1934 and is responsible for implementing monetary policy in the country, issuing currency, and promoting a safe and stable financial system.The Bank's main role is to "promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act. This includes maintaining the stability of the financial system, promoting a sound and efficient financial system, and fostering monetary conditions that will preser Read this Term Deputy Governor Beaudry

in speech to the Alberta School of Business in Edmonton

Headlines via Reuters:

• Canadians shouldn't be concerned 'if we follow a slightly different path to inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term normalization than our counterparts'
• floating Canadian dollar gives the bank the flexibility to chart a different path than trading partners and focus on setting interest rates
• it will take time to get back to the bank's inflation target of 2%
• if people start to base inflation expectations on current high numbers rather than the 2% target, high inflation becomes persistent, volatile and self-perpetuating
• it is important to stay the course in the fight against inflation despite the short-term pain that high interest rates can cause
• without a sufficiently strong policy response, a drift in expectations away from the bank's inflation target can open the door to inflation remaining high and volatile for longer
• even if inflation has declined lately, we can't take our eyes off it too soon and let it remain significantly above target for too long
• if inflation stays above target for a significant amount of time, then high and variable inflation will likely go hand in hand with a less efficient, more distorted economy