Perception gap on prices holds significant implications for the central bank, deputy governor says
The comfort zone the bank sets for its inflation target helps determine what happens to its key policy interest rate, which can affect the rates charged for mortgages and loans.
“When people and businesses feel confident that they know what the rate of inflation will be, they can make better long-range plans for their careers, their savings and their investments.” Research the bank has conducted with Statistics Canada during the pandemic has suggested that price increases are close to official inflation readings even when accounting for differences in purchasing based on household makeup, income level, education, age, and renters versus owners, Schembri says.Article content continued
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why the Bank of Canada suddenly wants to hear from usKevin Carmichael: As primary actors in a troubled economy, they are no longer above the fray
Read more »
Bank of Canada looks for broader input in updating inflation-target frameworkThe Bank of Canada is turning to the public for input on its inflation-rate target that underlies any changes to the central bank's trend-setting interest rate.
Read more »
Pandemic widens gap between perceived, measured inflation: BoC officialA senior Bank of Canada official says that many Canadians believe that official inflation measures don't reflect the rising costs they face.
Read more »
'No food category is immune': How the pandemic is causing rising grocery pricesCanada’s food industry has been shaken by the global COVID-19 pandemic, leading to a significant increase in the food inflation rate across the country.
Read more »
Bank of Canada looks for broader input in updating inflation-target frameworkThe Bank of Canada is turning to the public for input on its inflation-rate target that underlies any changes to the central bank's trend-setting interest rate.
Read more »
Toronto seeks to save oak tree older than CanadaIn the shadow of Canada's largest cluster of skyscrapers, Toronto is looking to preserve a majestic, centuries-old oak tree -- but efforts have been complicated by the pandemic.
Read more »