(November 3 – 09:30 ET) – The Bank of Canada is poised to stomp on inflation wherever it may appear, says the Bank’s Governor, Gordon Thiessen. He made his remarks yesterday at the Greater Charlottetown Area Chamber of Commerce meeting.
The Bank will not necessarily follow a rate hike from the U.S. Federal Reserve Board with one of its own, he said. Although, if inflationary pressures in the U.S. appear to be spurring inflation here, the Bank will act, he added.
“Let me be as clear as I can on this our current healthy economic expansion will continue only if we sustain a low and stable inflation environment,” he said, reiterating the Bank’s position. He also warned that Canada should be on guard for signs of organic domestic inflation here too.
Canadians can expect “business as usual” from the financial sector heading into Y2K, noting that the bug itself may not be the biggest problem, but “a possible overreaction…could be more disruptive than the Y2K problem itself.”
-IE Staff
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