MNI BRIEF: BOC’s Rogers-Watching CAD For Inflationary Impulse
The Bank of Canada does not target the Canadian dollar in its monetary policymaking but will watch the currency for potential weakness that could prove inflationary, BOC deputy senior governor Carolyn Rogers told reporters Thursday.
“We will watch the Canadian dollar if there is a depreciation of the currency that could potentially feed through some inflationary pressure as import costs go up for Canada,” she said in a press briefing.
The BOC on Wednesday held its key rate at 4.5% after eight previous increases and underlined it's finished hiking unless inflation remains stubborn. That contrasts with an increasingly hawkish Federal Reserve that looks set to keep hiking rates for now. “We are seeing inflationary pressures come down a little more than in the U.S.,” Rogers said.
(See MNI INTERVIEW: BOC Sees Soft Landing In GDP Stall-Ex-Govt-Econ)