BoC Senior Deputy Governor Carolyn Rogers emphasized the importance of continued vigilance in combating inflation, even as cooling price pressures brought some relief.
Speaking at an event overnight, Rogers noted that while the recent decline in inflation to 2% is “welcome news,” it is still too early to declare victory. “There’s still work to do,” she stated, adding that policymakers need to “stick the landing” to ensure that inflation returns sustainably to target levels.
The comments come in yesterday’s data which showed that inflation had decelerated to BoC’s 2% target in August—the slowest pace since early 2021. The two key core inflation measures also eased, with the average annual pace falling to 2.35% from 2.55% in July.
Recently, there is growing focus on preventing a deep economic slowdown, while rising unemployment became critical concerns for policymakers. Rogers acknowledged the shift in risk perception, saying, “It’s not an absolute tilt to the downside risks, but definitely we’re in a period where the risks are more balanced.”
