MNI BRIEF: Highlights From BOC Senior Deputy Rogers Speech

"Higher interest rates are starting to work to slow the economy and tame inflation. We have a long way to go to get inflation back to target, but there are some early signs that monetary policy is working. Unfortunately, this adjustment is not without some pain. We recognize that," Rogers said Tuesday.

"We don’t want this transition to be more difficult than it has to be. But higher interest rates in the short term will bring inflation down in the long term. Canadians are looking for ways to protect themselves from rising prices, and we are working to protect them from entrenched inflation."

"Borrowers with a variable-rate mortgage and fixed payments may face higher payments if they hit their “trigger rate”—the rate at which their monthly mortgage payment is covering only the interest and not paying down the principal."

"There are good reasons to believe that the system as a whole will be able to weather this period of stress and remain resilient."

"Canada's measures included a borrower-level mortgage stress test to ensure Canadians could continue to afford their homes when interest rates rose. And, importantly, we are not expecting a severe economic downturn with the kind of large job losses typical of past recessions." 

Additionally, "I am pleased to announce that today we launched an interactive dashboard of financial vulnerability indicators on our website. We’re sharing information on what we monitor to help people better understand the vulnerabilities we all face."

"Three forces—inflation, volatility in commodity and financial markets, and increased levels of debt—are not unique to Canada.. nd given how interconnected the global financial system has become, and the fact that Canada is a medium-sized, open economy, the impact here at home will also depend on how other countries weather the storm."