ContextRemarks to Calgary Economic Development in Alberta; the Bank of Canada keeps inflation low and stable and faces the threat of US tariffs on Canadian exports.
Why it mattersThe Bank of Canada says its task is to stop a tariff shock from becoming lasting inflation.
Problems raised
Tariffs would raise prices and slow growth.
Tariff levels keep changing.
Expectations could drift up.
Solutions proposed
Focus on anchoring inflation expectations.
Prevent a tariff problem from becoming an inflation problem.
