Speaking a day after we decided to hold interest rates steady at 5%, Deputy Governor Toni Gravelle discusses immigration, inflation and the role that newcomers play in helping our economy grow.
Bank maintains policy rate
We decided to hold the policy rate at 5%, largely because monetary policy has been working to cool the economy and relieve price pressures. But we are not yet where we want to be.
Overall, the economy no longer seems to be in a state of excess demand, but we still need to see inflation come down further.
We continue to keep an eye on inflation expectations, wage growth and the pricing behaviour of corporations to help us see if we are on a sustained path back to our 2% target.
More newcomers, more long-term benefits
Canada has one of the fastest-growing populations among advanced economies, thanks largely to immigration. The number of permanent and non-permanent residents we’ve welcomed has risen sharply recently.