The severity of supply chain problems has shocked the Bank of Canada

In a speech at Women in Capital Markets in Toronto, Carolyn Rogers said it’s been hard to have a clear vision of the future over the past two years.

” Problems that initially only affected a few basic products, such as microchips, have spread to a wide range of goods. “

The invasion of Ukraine has exacerbated supply difficulties and increased commodity prices and inflation around the world.

And now, Ms. continued. Rogers, parts of China are under new lockdowns, leading to further supply issues, shipping delays and uncertainty.

These issues, we did not expecthe argued.

Highest inflation rate in 30 years

Supply chain disruptions have caused inflation, which has hit its highest level in three decades.

The Bank of Canada raised its key interest rate target by half a percentage point last month, to 1.0%, and warned that further rate hikes would come as it works to bring inflation back to its 2.0%target.

Ms. emphasized. Rogers the Bank of Canada’s freedom in making its decisions.

[Le] The desire to have a public body independent of the banking sector and the political apparatus, with the responsibility to guide the economy to serve the best interests of Canadians in the long run, is the origin of the creation of central banks.he explained.

Ms Rogers noted that inflation of nearly 7%, which is spreading across more and more everyday objects, has the effect of squeezing family budgets and putting pressure on businesses.

High inflation in Canada and elsewhere is largely associated with global pressures, including supply chain disruptions and high commodity prices. But as the Canadian economy begins to overheat, we cannot allow demand to exceed the supply trend too far or risk further inflation.

The Bank of Canada indicated that it expects inflation to average close to 6% in the first half of the year and remain above its 1-3% control range for the rest of the year.