Tiff Macklem: The role of Canadian business in fostering non-inflationary growth

Remarks (delivered virtually) by Mr Tiff Macklem, Governor of the Bank of Canada, to the Canadian Chamber of Commerce, Ottawa, Ontario, 9 February 2022.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

It is a pleasure to join this summit to talk about the economic recovery. I'm particularly pleased to be here to discuss the challenges Canada must overcome to sustain strong growth. And when I say, "sustain strong growth," to be clear, that means "non-inflationary growth."

There is no better time than now to have this discussion. Our economic recovery from the deepest recession on record has been strong. Canadian businesses and workers have shown impressive ingenuity and resilience. Employment is robust, household savings are high, and immigration is rebounding.

As we emerge from the COVID-19 pandemic, Canada has the opportunity to make long overdue gains in productivity. In the years ahead, business investment decisions will determine the path of Canada's productivity growth. And productivity growth is vital to non-inflationary growth and rising standards of living. At a time when inflation is already well above our target, this is more vital than ever.