MNI BRIEF: Highlights of Bank of Canada Deputy Beaudry Speech

Bank of Canada Deputy Governor Paul Beaudry is speaking Thursday in Victoria, British Columbia, and here are some highlights:

• "The Bank remains focused on taking the steps needed to restore inflation to 2%."
• "The likelihood that total inflation could get stuck well above the 2% target had increased. Based on this accumulated evidence, we decided to raise the policy rate."
• "We know this tightening cycle has not been easy for many Canadians. But the 
  alternative—not controlling inflation—would be far worse."
• "Our most recent analysis suggests Canada’s neutral rate has not drifted much from its pre-pandemic range and currently lies around 0%–1% in real terms, or 2%–3% in nominal terms."
• "The risks appear mostly tilted to the upside. In the Bank’s view, that makes it more likely that long-term real interest rates will remain elevated relative to their pre-pandemic levels than the opposite."