Why Bank of Canada Governor Stephen Poloz Isn't Too Worried About Rising Prices

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Why Stephen Poloz is not that worried about rising prices

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Why Stephen Poloz is not that worried about rising prices

As former Governor of the Bank of Canada and current special adviser to the Osler group, Stephen Poloz shares his insights on inflation, immigration, and commodities with Financial Post’s Larysa Harapyn.

Inflation: A Concern or Not?

Prices may be rising, but Stephen Poloz isn’t too concerned about it. According to him, inflation is a natural part of economic growth and can be managed through monetary policy.

"The relationship between the price level and employment is a bit more complicated than people think," he says. "We need to focus on achieving maximum employment while keeping inflation in check."

Poloz emphasizes that the Bank of Canada’s primary goal is to achieve low and stable inflation, not to eliminate it entirely. He believes that a moderate level of inflation can even be beneficial for economic growth.

Immigration: A Solution to Labor Shortages

As the Canadian economy continues to grow, labor shortages are becoming increasingly common. Stephen Poloz suggests that immigration can be a key solution to these problems.

"We need to recognize that immigration is not just about bringing in workers; it’s also about building a diverse and inclusive society," he says.

Poloz notes that immigrants bring new skills, ideas, and perspectives to the Canadian workforce. He believes that by welcoming more skilled workers, Canada can fill labor gaps and drive economic growth.

Commodities: A Market to Watch

Commodity prices have been on the rise in recent months, driven by factors such as supply chain disruptions and strong demand from emerging markets. Stephen Poloz advises investors to keep a close eye on commodity markets.

"Commodities are an important part of Canada’s economy, particularly for countries like Canada that export natural resources," he says.

Poloz believes that commodity prices will continue to be volatile in the short term but should stabilize as global economic conditions improve. He recommends that investors diversify their portfolios and consider investing in a mix of commodities and other asset classes.

Conclusion

Stephen Poloz’s insights on inflation, immigration, and commodities offer valuable perspectives for businesses, investors, and policymakers. While prices may be rising, he believes that Canada is well-positioned to manage these challenges and drive economic growth.

By understanding the complexities of these issues and staying informed about market trends, individuals can make better decisions and achieve their goals.

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