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Bank of Canada says Canada at inflation risks

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The Bank of Canada has highlighted the urgent need for increased business investment to boost productivity, warning of inflation risks. Senior Deputy Governor Carolyn Rogers emphasizes the importance of addressing low productivity to safeguard the economy.

The Bank of Canada is worried about low productivity and wants businesses to invest more to avoid inflation risks. Senior Deputy Governor Carolyn Rogers spoke in Nova Scotia and said it’s urgent to act now. She thinks it’s like an emergency and we need to improve productivity to protect the economy from inflation. We should invest more in machinery, equipment, and intellectual property. 

Rogers warned that inflation could be more of a problem because globalization benefits are decreasing, demographics are changing, climate change is happening, and there are trade tensions. Rogers said we need to improve productivity soon, especially when compared to other countries. We need to avoid economic stagnation and inflation.

According to Statistics Canada, productivity went up slightly in the fourth quarter, but it went down 1.8% in 2023, which is the third year in a row that it has gone down.

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