Speech summary

Greater Charlottetown Area Chamber of Commerce

November 26, 2024

In his first public speech as a deputy governor, Rhys Mendes explains why higher interest rates were needed to get inflation back down to the 2% target and why we want it to stay there.

Watch Deputy Governor Mendes speak to the Greater Charlottetown Chamber of Commerce. Read the full speech.

Monetary policy worked to bring down inflation

The Bank of Canada responded to the highest inflation in 40 years by forcefully raising interest rates. And it worked: inflation is back at our 2% target, and interest rates are coming down too.

The process hasn’t been painless though. Elevated interest rates have been tough on families and businesses. Many Canadians are now facing higher interest payments on their mortgages and other loans. And even with inflation back at our target, many necessities cost much more than they did before the COVID-19 pandemic began.

A lot of the rise in inflation …