Bank of Canada Needs to 'Move Quickly' to Combat Inflation

David Dodge appears on BNN Bloomberg to share his insights on what the Bank of Canada might do over the next 12-14 months on interest rates and controlling inflation. He says:

• the central bank will need to regain control and bring the neutral rate to 2-2.5 per cent for markets to gain confidence;
• it is very important that the expectation for prolonged inflation does not get factored in to consumer and business planning;
• low levels of business investment in Canada is due to a number of factors, including uncertainty over regulatory policy, taxation policy and incentives to invest; and
• governments and business need to work together to put more investment in place—it must be a cooperative effort and not an antagonistic one.