As Fed looks to hike interest rates higher, Rogers says BoC can carve its own path

Senior deputy governor Carolyn Rogers says Canada is facing its own set of economic challenges which requires the Bank of Canada to tailor its policy accordingly.

In a speech Rogers is delivering in Winnipeg today, the central bank official touts the advantage of an independent monetary policy.

She says while the world is interconnected, the Bank of Canada needs to do what’s best for Canada, while other central banks do what’s best for their countries.

Her remarks come one day after the Bank of Canada announced it is holding its key interest rate steady at 4.5 per cent.

The announcement marked the first time in a year that the central bank isn’t raising interest rates as its policy diverges from the U.S. Federal Reserve, which has signalled more rate hikes are to come.

Rogers stressed that the Bank of Canada’s pause on rate hikes is conditional, and that if higher interest rates prove to be necessary to cool inflation, the central bank will be ready to act.

This report by The Canadian Press was first published March 9, 2023.

Bank of Canada holds key rate for first time in a year, leaves door open to hikes