, we will get inflation back to target. we know higher interest rates are difficult for many canadians - particularly young canadians - many of whom are recent homebuyers and are therefore carrying higher debt loads. we don't want this transition to be more difficult than it has to be. but higher interest rates in the short term will bring inflation down in the long term. canadians are looking for ways to protect themselves from rising prices, and we are working to protect them from entrenched inflation. it will take time to get back to solid growth with low inflation, but we will get there. by working through this difficult phase, we will get back to price stability with sustained economic growth, which benefits everyone. thank you for your attention, and i look forward to your questions. i would like to thank stephen murchison and louis morel for their help in preparing this speech. 1 financial stability board, " 2021 list of global systemically important banks ( g - sibs ) " ( november 23, 2021 ). [ ] 2 bank of canada, " tracking the financial vulnerabilities of households and the housing market. " [ ] 5 / 6 bis - central bankers'speeches 3 see l. morel, " analyzing the house price boom in the suburbs of canada's major cities during the pandemic, " bank of canada staff analytical note no. 2022 - 7 ( june 2022 ). [ ] 4 regulatory filings of canadian banks show that, since the onset of the pandemic, about 670, 000 mortgages for home purchases were originated with a variable rate. both the volume of new mortgages and the share of new mortgages with a variable rate have risen. variable - rate mortgages have represented around 50 % of new lending since mid - 2021, up from an average of 20 % in the five years before the pandemic. for more information, see " funds advanced and outstanding balances for new and existing lending by chartered banks " on the bank of canada's website. [ ] 5 see s. murchison and m. tenyenhuis, " variable - rate mortgages with fixed payments : examining trigger rates, " bank of canada staff analytical note no. 2022 - 19 ( november 2022 ). [ ] 6 / 6 bis - central bankers'speeches

stephen s poloz : release of the monetary policy report opening statement by mr stephen s poloz, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, ontario, 22 january 2020. * * * good morning. senior deputy governor wilkins and i are glad to be here to answer your questions about today ’ s interest rate announcement and our monetary policy report ( mpr ). before turning to your questions, let me briefly summarize the substance of governing council ’ s deliberations. you will recall that in october we were most occupied with the deteriorating global outlook. we could see clearly that this was affecting canada ’ s economy too — not only through exports and the manufacturing sector, but also through the effects of heightened uncertainty on firms ’ investment decisions. however, primarily because of a strong recovery in the housing sector and a healthy labour market, the canadian economy was demonstrating good resilience overall. quite a lot has happened during the past three months. global economic growth appears to have bottomed, as shown by an upturn in trade and manufacturing indicators. uncertainty remains elevated, of course, and in some ways has worsened, given rising geopolitical tensions in the middle east that had tragic consequences. but the phase one china - us trade deal and the pending ratification of cusma are positive developments that should lead to lower business uncertainty over time everywhere, including in canada. at the same time, however, indicators of the canadian economy have turned decidedly mixed. the national accounts data for the third quarter of 2019 showed a significant slowdown, as we expected, and monthly gdp data have extended that slowdown into the fourth quarter. we also received a string of disappointing readings related to the canadian consumer. vehicle sales, retail sales more generally, consumer confidence and job growth all softened. we are now monitoring fourth - quarter growth of only 0. 3 percent. at the same time, third - quarter investment spending was surprisingly strong. statistics canada ’ s historical revisions showed more growth, more investment from government infrastructure spending and a higher household saving rate than previously thought. in short, the canadian economy last year was in a stronger position than we previously believed — operating close to capacity with inflation near target. much of governing council ’ s deliberations focused on how persistent this recent slowdown in the domestic economy might be. the bank ’ s outlook is for a rebound in growth to about 1. 3 percent in the first quarter and a pickup to about 2