MNI BRIEF: BOC Says CPI Buffer From Higher CAD Would Be Nice

Bank of Canada Senior Deputy Governor Carolyn Rogers said Thursday a stronger Canadian dollar could be helpful in slowing inflation, a rare comment from a central bank that normally avoids jawboning the currency.

“Normally, rates would go up, and the price of oil would go up, we would see some investment coming into Canada, you would see the Canadian dollar pick up and it would provide an important buffer on inflation,” Rogers said while taking audience questions after a speech in Calgary.

“We haven’t had that buffer. So, I was reading some commentary yesterday, there is an expectation for the Canadian dollar to go up, we will see if that happens. It would be nice to get that buffer.” Canada's dollar has been weak in part because of safe-haven buying of U.S. dollars and some views the Fed will hike about as fast as the BOC, the chief economist at the federal export bank has told MNI.