MNI BRIEF: Highlights From BOC Senior Deputy Gov Rogers Speech

Following are highlights from a speech Thursday by Bank of Canada Senior Deputy Governor Carolyn Rogers.

• "Major economies around the world are highly interconnected—but while we’re always thinking globally, we have to act locally. We must tailor our policy to Canadian circumstances. And monetary policy needs to be forward-looking."
• "As global inflationary pressures continue to recede, each country will need to chart its own course to get back to price stability. Canada, like other countries, has unique circumstances that will affect the path of the economy and inflation. But that’s the advantage of an independent monetary policy: We can get back to our inflation target of 2% in a way that makes sense for us, just as other central banks are doing for them."
• "Looking at the data since January, Governing Council found a mixed picture. Overall, though, things are unfolding broadly in line with our outlook"
• "We’ll need to see more evidence to fully assess whether monetary policy is restrictive enough to return inflation to 2%."
• "We agreed inflation is coming down largely as expected and that there has been a clear momentum shift in goods prices. But we also agreed services price inflation needs to cool further—beyond the levelling off I mentioned. And we will need to see companies return to more normal pricing behaviour. Year-over-year and three-month rates of core inflation will both need to come down more than they have for inflation to return sustainably to 2%, as will short-term inflation expectations."
• "With inflation still well above our target, we’re still more worried about upside risks."