MNI BRIEF: Highlights From BOC Senior Deputy Rogers Speech

"Getting inflation all the way back to 2% will take some time. We also know there could be bumps along the way."

"Because we are in a period of excess demand, we need a period of lower growth to balance things out and bring demand back in line with supply. The reduced spending that results from this re-balancing will ultimately lead to lower inflation."

"The longer inflation expectations remain high, the greater the risk that elevated inflation becomes entrenched," Senior Deputy Governor Carolyn Rogers said Thursday. "If that were to happen, higher inflation could become self-fulfilling, and a damaging cycle would be set in motion. We want to ensure this scenario does not materialize because if it does the economic cost of restoring price stability will be much higher."

"Although CPI inflation came in slightly lower in July, this drop was due mostly to gasoline prices. If we exclude gasoline prices, inflation increased and spread across components."

"Our primary focus will be to judge how monetary policy is working to slow demand, how fast supply challenges are resolved, and most importantly, how both inflation and inflation expectations respond."

"We have chosen to front-load rate increases" and "this has been the right response to the current underlying causes of inflation in Canada."

"Given the outlook for inflation, we continue to judge that the policy interest rate will need to rise further."