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.