Nicolas Vincent: Understanding the unusual - how firms set prices during periods of high inflation

Remarks by Mr Nicolas Vincent, Deputy Governor of the Bank of Canada, at the Chamber of Commerce of Metropolitan Montreal, Montreal, 3 October 2023. 

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

Central bank speech  | 
06 October 2023


Good morning. It is a pleasure to be here with you today.

Before I continue, I would like to acknowledge that we are meeting today on the land of the First Nations, Inuit and Métis and that Montréal is the traditional unceded territory of the Mohawk Nation. As we gather following the third National Day for Truth and Reconciliation this past Saturday, this is an occasion to pay our respects to Indigenous Peoples across the country and to their ancestors for their immeasurable contributions to this country.

Many of you will know that this is my first public speech since becoming a Deputy Governor of the Bank of Canada earlier this year. The opportunity to speak in my home province is certainly a special honour. I would like to thank the Chamber of Commerce of Metropolitan Montreal for making this possible.

My role at the Bank is a new one. Along with the Governor and four other Deputy Governors, I am a member of Governing Council, the Bank's policy-making body.

However, because my role is part-time, I do not oversee a department, and I do not participate in the discussions surrounding management more generally. Beyond these differences, the main one is that I am an external member of the Bank's Governing Council. The idea in creating this position was to add an outsider to the Bank's main deliberative body, someone with a fresh perspective.

Without question, the topic of today's speech-how firms set prices during periods of high inflation-is an important one for monetary policy. But more than that, it also offers a window into who I am as an economist and an academic.