204078
200738

Do you believe higher inflation is here to stay?

Poll: Fighting inflation

Preventing current high inflation levels from becoming embedded into the public's expectations is key if the country is to avoid falling into recession, former Bank of Canada governor Stephen Poloz said Thursday.

Poloz, who was head of the bank for seven years until his term expired in June of 2020, made the comments during an interview in Banff, Alta., where he was a speaker at the Global Business Forum, an annual conference that attracts executives and business leaders from around the world.

Poloz said he believes the current cycle of high inflation is transitory, pointing to the latest monthly reading from Statistics Canada showing inflation is already beginning to ease — in spite of the fact, Poloz said, that interest rate hikes already implemented by central bankers have barely had time to have an effect.

“It means it (inflation) is going to go away more or less by itself in time. But if it takes one year for it to climb up, it has to take a full year for it to flatten and another full year for it to go away," Poloz said.

He said it's possible inflation could return to the Bank of Canada's target rate of two per cent without a severe or even a mild recession. He pointed out the Canadian economy is in a strong position, with a strong labour market, high levels of income and household savings, and encouraging levels of corporate investment.

However, he also said there's no guarantee of a soft landing. A major geopolitical event that causes a dramatic spike in the price of oil, for example, could cause a recession all on its own regardless of interest rates or any other factor.

Poloz said one of the biggest risks is actually the public's expectations. If people become convinced that high inflation is here to stay, he said, that could lead to higher wage settlements that are difficult to reverse.

Spiralling wages in turn could drive inflation even higher, forcing the need for a more difficult economic contraction to get the cost of living under control.

Read more

Have an opinion? Send it to [email protected]



Previous Polls

December 6, 2022 - 9065 votes
Are you concerned about flying over the upcoming holidays?

Yes: 2216
No: 2794
Unsure: 135
Not flying over holidays: 3920

December 5, 2022 - 11247 votes
Do you agree with the province's push to get kids to take the flu shot?

Yes: 4878
No: 5849
Unsure: 520

December 3, 2022 - 9929 votes
Should Ottawa provide disaster compensation for homes flooded in flood plains?

Yes: 3453
No: 5439
Unsure: 1037

December 1, 2022 - 10935 votes
Should driving without winter tires in snow affect your insurance if you're in an accident?

Yes: 8500
No: 1928
Unsure: 507

November 30, 2022 - 11784 votes
Should stratas be able to ban pot smoking by residents' on their own patios?

Yes: 5861
No: 5489
Unsure: 434





Previous Poll Results

Are you concerned about flying over the upcoming holidays?

Total Votes:  9069
Yes: 
24.45%
No: 
30.82%
Unsure: 
1.49%
Not flying over holidays: 
43.25%

» Previous Polls

Have an idea for a poll question?
Email us [email protected]


203931
204173
199702
205020