remarks by carolyn rogers senior deputy governor calgary economic development september 8, 2022 calgary, alberta economic progress report : restoring price stability good morning, everyone, and thank you for the opportunity to be here. this is my second public speech since joining the bank of canada at the end of last year, and i am really pleased to be out west this time. i grew up in western canada and over the course of my career have lived in every province from manitoba west to british columbia, including some time here in calgary. my favourite time to be out west is in the fall, during harvest. it ’ s a time of year that holds a lot of promise and brings back many fond memories for me. i ’ m looking forward to spending the next couple of days speaking with business leaders like you, hearing their perspectives on the albertan and canadian economies. but first, i ’ d like to offer you some of the bank ’ s views — particularly on the economy and monetary policy. i plan to cover three things this morning. first, i want to spend some time discussing our current view on the canadian economy and inflation, specifically. the consumer price index ( cpi ) was 7. 6 % in july, down slightly from june ’ s rate of 8. 1 %. while it looks like we might have seen the peak of overall inflation in canada, inflation excluding gasoline prices has continued to rise and broaden across goods and services. there are also some significant uncertainties, particularly in global commodity markets, that could set us back. and although most days it feels like the pandemic is behind us, we are heading into winter, and that means more time indoors. if we ’ ve learned anything over the last two years, it ’ s to expect the unexpected. of course, the second thing i want to talk about is our most recent rate decision. yesterday the bank raised the policy interest rate by 75 basis points. this came on the heels of july ’ s decision to increase the policy rate by a full percentage point. in total, the bank has increased the policy rate by 3 % since march. i ’ ll spend some time explaining why we have chosen to front - load rate increases — i would like to thank erik ens and kristina hess for their help in preparing this speech. why we think this has been the right response to the current underlying causes of inflation in canada. the third and final thing i will spend some time on is the path forward. i hope to give you a

has put it, “ the global financial crisis has shaken the foundations of the deceptively comfortable pre - crisis central banking world ”. 2 the conventional wisdom which held prior to the crisis has proved inadequate. it is now generally accepted that price stability alone is insufficient for macroeconomic stability. in addition, we now know that there is no neat separation between monetary and financial stability functions, and that if each central bank looks after its own economy, this does not automatically lead to an appropriate global monetary stance. further, interest - rate policy alone is not enough. the regulation and supervision of financial institutions needs to go beyond a microprudential perspective towards a macroprudential orientation, with central banks playing a key role in this process. it was the financial crisis which brought to the fore the need for greater global cooperation, not only among advanced economies but also in emerging - market economies who would prove to be the drivers of global growth during the crisis. it was for this reason that the prominence of the g - 20 was raised to that of a leaders ’ summit in 2009. there was clear recognition that there needed to be greater inclusivity to effectively mitigate the damage of the financial crisis, which had clearly highlighted the vulnerability and the interlinkages of the global financial system. the international response let me now turn to the work undertaken by the international forums in which the bank is an active participant ( including the g - 20, brics, and the bank for international settlements ), globalisation and central bank policies, a speech by lucas papademos at the bridge forum dialogue, 22 january 2008. bis working papers no. 353, central banking post - crisis : what compass for uncharted waters? by claudio borio. bis central bankers ’ speeches with the objective of ensuring that outcomes reached are in the best interest of not only the global economy but also emerging markets, south africa, and the region. since the onset of the crisis, the g - 20 assumed a leading role in trying to address the consequences thereof in an effort to reduce the negative repercussions for the global economy. this entailed, inter alia, the g - 20 taking the lead in addressing the shortcomings of the global financial system, enhancing financial safety nets, and, together with the basel committee on banking supervision, ensuring a more sound and stable financial and regulatory framework. the g - 20 played a prominent role in shaping the elements of the work programme of the international monetary fund, or