Rogers: BoC’s pause is conditional

Carolyn Rogers, senior deputy governor of the Bank of Canada, stated on Thursday that policymakers are seeking additional proof that the present interest rate levels are enough. She will speak in advance at the Manitoba Chambers of Commerce at at 18:55 GMT, discussing “the causes of high inflation and how we know inflation is declining.”

The USD/CAD is getting close to the 1.3800 level after losing ground during the American session. On Thursday, the Canadian Dollar had one of the worst performances among the G10.

Key Quotes

“Yesterday, we decided to leave the policy rate at its current level of 4.50%. We also continued our policy of quantitative tightening”.

“It’s a conditional pause, though. If economic developments unfold as we projected and inflation comes down as quickly as we forecast in the January Monetary Policy Report (MPR), then we shouldn’t need to raise rates further. But if evidence accumulates suggesting inflation may not decline in line with our forecast, we’re prepared to do more”.


“We’ll need to see more evidence to fully assess whether monetary policy is restrictive enough to return inflation to 2%. For now, let me unpack recent developments and share some insight into what we discussed and how we’ll be thinking about things going forward”.

“And with inflation still well above our target, we’re still more worried about upside risks”.

“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”.

“We’re watching closely to see how things unfold. And we are committed to getting inflation all the way back to 2% so Canadians can once again count on low, stable and predictable inflation with sustainable economic growth”.