Bank of Canada Governor Macklem: When we use special tools to respond to a crisis, we need to clearly understand what we are trying to achieve with these tools and under what circumstances these tools are no longer needed. In Canada, the threshold for using special tools has always been high and should remain at a high level.

Bank of Canada Governor Macklem: Rapid wage increases combined with weak productivity may drive up inflation as businesses seek to pass on higher costs. Otherwise, the Canadian economy may continue to grow at a rate below potential, thus lowering inflation.

Bank of Canada Governor Macklem: Our inflation outlook carries risks, and we are also concerned that inflation may be higher or lower than expected.