BOC’s Macklem: Our surveys show businesses are planning to pass on more of these cost increases

  • Energy prices have been high for 8 months and look like they’re going to stay high
  • We are seeing more investment in the energy secretary
  • Business can absorb higher costs for awhile but ultimately they pass them on
  • Our surveys show they are planning to pass on more of these cost increases

He’s referring to this chart from the MPR:

  • Even with rates here, our rate is low enough that it’s not restraining growth
  • There is no pre-determied path for rates
  • There could be a further need for rate hikes but uncertainty is high
  • We’re going to take decisions one at a time based on incoming information
  • Inflation is looking less likely to be well-contained
  • Rogers: We debated a hike and a hold
  • Rogers: There was a very strong consensus
  • Rogers: What drove the decision was a shift in the balance of risks on inflation

This article was written by Adam Button at investinglive.com.

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