News

The Canadian economy entered 2022 in a strong position. The Bank is forecasting growth of 4% in 2022 and about 3½ % in 2023.

In the fourth-quarter Business Outlook Survey, reports of supply chain bottlenecks and labour shortages remain elevated. Firms cited robust growth in demand, although those offering hard-to-distance services still had sales below pre-pandemic levels, even before the Omicron variant began spreading broadly. These factors are resulting in upward pressures on prices over the next year.

This survey took place in November 2021 before the Omicron variant of COVID-19 began spreading broadly in Canada. In December, the number of COVID-19 cases rose dramatically and governments began to reimpose containment measures. Many Canadians think inflation will be high over the next two years because of supply disruptions caused by the pandemic. They are more concerned about inflation now than they were before the pandemic and believe it has become more difficult to control. However, near-term inflation expectations are not feeding into expectations for wage growth or longer-term inflation. Showing confidence in the labour market, workers are more likely than ever to want to change jobs.

The Bank of Canada and Office of the Superintendent of Financial Institutions today released the results of a pilot project on climate scenario analysis.

Governor Tiff Macklem speaks about the Bank of Canada’s monetary policy framework review and the agreement between the Government of Canada and the Bank to renew the 2 percent inflation target.