Senior deputy governor Carolyn Rogers says the central bank is wary of a wage-price spiral, as workers seek pay raises that match the year's inflation spike
Wages appear set to determine the pace at which the Bank of Canada raises interest rates over the rest of the year.
Bank of Canada senior deputy governor Carolyn Rogers said last week that the central bank is wary of a wage-price spiral, as workers take advantage of a to insist on salary increases that match this year’s spike in the cost of living. That could cause inflation to become entrenched, as employers likely would seek to recoup higher labour costs by charging more for goods and services.in Calgary, Rogers described the labour market as tight, contributing to the central bank’s determination that demand has exceeded the economy’s ability to keep up with orders.
Workers are “looking at the rate of inflation and what it’s doing to their purchasing power, their budgets, and they’re looking at the same tight labour markets and they’re thinking ‘I need a raise,’” Rogers told reporters.by three quarters of a percentage point, the second consecutive supersized increase after July’s one-percentage-point hike.
Another interpretation was that Macklem was simply urging his audience to believe him when he says the Bank of Canada will do what is necessary to get inflation under control, even if that means courting a recession.
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Wages key to pace of Bank of Canada's remaining rate hikesBank of Canada senior deputy governor Carolyn Rogers says the central bank is wary of a wage\u002Dprice spiral. Read on
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Wages key to pace of Bank of Canada's remaining rate hikesBank of Canada senior deputy governor Carolyn Rogers says the central bank is wary of a wage\u002Dprice spiral. Read on
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Wages key to pace of Bank of Canada's remaining rate hikesBank of Canada senior deputy governor Carolyn Rogers says the central bank is wary of a wage\u002Dprice spiral. Read on
Read more »
Wages key to pace of Bank of Canada's remaining rate hikesBank of Canada senior deputy governor Carolyn Rogers says the central bank is wary of a wage\u002Dprice spiral. Read on
Read more »
Wages key to pace of Bank of Canada's remaining rate hikesBank of Canada senior deputy governor Carolyn Rogers says the central bank is wary of a wage\u002Dprice spiral. Read on
Read more »
Wages key to pace of Bank of Canada's remaining rate hikesBank of Canada senior deputy governor Carolyn Rogers says the central bank is wary of a wage\u002Dprice spiral. Read on
Read more »