BoC’s Rogers: We need higher rates to moderate demand

The Bank of Canada Governor Senior Deputy Governor Carolyn Rogers says the labour market is a really strong indicator right now of excess demand in the Canadian economy.

Key comments

We don’t target components of inflation, we target the overall level of inflation.

We need higher rates to moderate demand including demand in the housing market.

Housing price growth is unsustainably strong in Canada, it would not be a bad thing for the economy for the growth in housing prices to moderate a bit.

We do expect that housing price growth will moderate as rates go up.

We think the technology that underlines digital currencies has some potential.

It’s completely realistic that Canadians are going to want a digital Canadian dollar at some point.

Meanwhile, USD/CAD has been consolidating in bullish territory but is down by some 0.28% at the time of writing, moving sideways within a 1.2825/93 range on Tuesday.