mark carney : summary of the latest monetary policy report opening statement by mr mark carney, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, 19 january 2011. * * * good morning. tiff and i are pleased to be here with you today to discuss the january monetary policy report, which the bank published this morning. the global economic recovery is proceeding at a somewhat faster pace than the bank had anticipated, although risks remain elevated. private domestic demand in the united states has picked up and will be reinforced by recently announced monetary and fiscal stimulus. european growth has also been slightly stronger than anticipated. however, ongoing challenges associated with sovereign and bank balance sheets will limit the pace of the european recovery and are a significant source of uncertainty to the global outlook. some emerging markets have begun to implement more restrictive policy measures in response to overheating in their economies. the effectiveness of these policies will influence the path of commodity prices, which have increased significantly since october. the recovery in canada is proceeding broadly as anticipated, with a period of more modest growth and the beginning of the expected rebalancing of demand. the contribution of government spending is expected to wind down this year, consistent with announced fiscal plans. stretched household balance sheets are expected to restrain the pace of consumption growth and residential investment. in contrast, business investment will likely continue to rebound strongly, owing to stimulative financial conditions and competitive imperatives. net exports are projected to contribute more to growth going forward, supported by stronger u. s. activity and global demand for commodities. however, the cumulative effects of the persistent strength in the canadian dollar and canada ’ s poor relative productivity performance are restraining this recovery in net exports and contributing to a widening of canada ’ s current account deficit to a 20 - year high. overall, the bank projects the economy will expand by 2. 4 per cent in 2011 and 2. 8 per cent in 2012 – a slightly firmer profile than had been anticipated in october. the bank continues to expect that the economy will return to full capacity by the end of 2012. underlying inflationary pressures remain subdued, reflecting the considerable slack in the canadian economy. core inflation is projected to edge gradually up to 2 per cent by the end of 2012, as excess supply in the economy is slowly absorbed. inflation expectations remain well - anchored. total cpi inflation is being boosted temporarily by the effects of provincial indirect taxes, but is expected to converge to the 2 per

tiff macklem : release of the monetary policy report opening statement by mr tiff macklem, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, ontario, 26 october 2022. * * * good morning. i'm pleased to be here with senior deputy governor carolyn rogers to discuss today's policy announcement and the bank's monetary policy report ( mpr ). today, we raised the policy interest rate by 50 basis points to 3. 75 %. this is the sixth consecutive increase since march. quantitative tightening continues and is complementing increases in the policy rate. we also expect our policy rate will need to rise further. how much further will depend on how monetary policy is working to slow demand, how supply challenges are resolving and how inflation and inflation expectations are responding to this tightening cycle. our decision today reflected several considerations. first, inflation in canada remains high and broad - based. inflation has come down in recent months, but we have yet to see a generalized decline in price pressures. second, and related, the economy is still in excess demand - it's overheated. households and businesses want to buy more goods and services than the economy can produce, and this is driving prices higher. third, higher interest rates are beginning to weigh on growth. this is increasingly evident in interest - rate - sensitive parts of the economy, like housing and spending on big - ticket items. but the effects of higher rates will take time to spread through the economy. fourth, there are no easy outs to restoring price stability. we need the economy to slow down to rebalance demand and supply and relieve price pressures. we expect growth will stall in the next few quarters - in other words, growth will be close to zero. but once we get through this slowdown, growth will pick up, our economy will grow solidly, and the benefits of low and predictable inflation will be restored. finally, we are trying to balance the risks of under - and over - tightening. if we don't do enough, canadians will continue to endure the hardship of high inflation. and they will come to expect persistently high inflation, which will require much higher interest rates and potentially a severe recession to control inflation. nobody wants that. if we do too much, we could slow the economy more than needed. and we know that has harmful consequences for people's ability to service their debts, for their jobs and for their businesses.