Despite recent celebrations that inflation had cooled, Bank of Canada executives acknowledged this week that many Canadians are still struggling with the cost of living. "People feel like things are more expensive and they are" said Senior Deputy Governor Carolyn Rogers at the Commons finance committee,This stark reality check comes after bank governor Tiff Macklem's earlier description of the economy as "a good news story" following the cut in interbank loan rates.Rogers emphasized that while inflation is back to target, interest rates are decreasing, and the economy is growing, Canadians don't feel better because things are indeed more expensive. When asked if prices will come down, Rogers replied, "No. We would be giving people a false sense of hope if we said prices will come down."Macklem later modified his stance, acknowledging that people with lower incomes are having a tougher time. He described the economy as "soft," indicating ongoing financial stress. This concern was echoed by Liberal MP Rachel Bendayan, who noted that despite positive data, Canadians aren't feeling optimistic.The Bank's October 23 Monetary Policy Report predicts slow economic growth, declining business investment, and reduced hiring. The labour market is softening, with modest employment growth and weaker economic output gains expected by year's end.The next interest rate announcement is due on December 11.
Despite recent celebrations that inflation had cooled, Bank of Canada executives acknowledged this week that many Canadians are still struggling with the cost of living. "People feel like things are more expensive and they are" said Senior Deputy Governor Carolyn Rogers at the Commons finance committee,This stark reality check comes after bank governor Tiff Macklem's earlier description of the economy as "a good news story" following the cut in interbank loan rates.Rogers emphasized that while inflation is back to target, interest rates are decreasing, and the economy is growing, Canadians don't feel better because things are indeed more expensive. When asked if prices will come down, Rogers replied, "No. We would be giving people a false sense of hope if we said prices will come down."Macklem later modified his stance, acknowledging that people with lower incomes are having a tougher time. He described the economy as "soft," indicating ongoing financial stress. This concern was echoed by Liberal MP Rachel Bendayan, who noted that despite positive data, Canadians aren't feeling optimistic.The Bank's October 23 Monetary Policy Report predicts slow economic growth, declining business investment, and reduced hiring. The labour market is softening, with modest employment growth and weaker economic output gains expected by year's end.The next interest rate announcement is due on December 11.
