Bank of Canada preparing for more uncertain and shock-prone future

VANCOUVER — Bank of Canada governor Tiff Macklem says the central bank is preparing for a future that looks more uncertain and more prone to shocks.

In a speech to the Greater Vancouver Board of Trade, he says the spike in inflation in 2022 was a reminder that even though inflation was relatively low and stable for decades leading up to the pandemic, central banks cannot take public trust for granted.

Macklem says structural changes are underway in the world including technological change, a shift to a low-carbon economy and demographic shifts.

To prepare, Macklem says the Bank of Canada is readying for this future, learning from the lessons of the pandemic and its aftermath.