The Financial Post reports in its Friday, Sept. 9, edition that in a speech before Calgary Economic Development on Thursday, Bank of Canada senior deputy governor Carolyn Rogers said the policy rate decisions the central bank is making right now could take up to two years to have full effect on inflation. The Post's Stephanie Hughes writes that Ms. Rogers said, "Getting inflation all the way back to 2 per cent will take some time." She added: "We also know there could be bumps along the way. ... Monetary policy works like a chain reaction or sequence of events. But that sequence takes time. Both history and research tell us that changes to the bank's policy rate affect different households and sectors of the economy differently and at different speeds." Ms. Rogers pointed to the rising risks of inflation becoming entrenched as the reason why the BOC raised the policy rate by 75 basis points on Wednesday. Ms. Rogers also acknowledged the struggle Canadians are facing with rising borrowing costs on top of high inflation. Some economists characterized Ms. Rogers's speech as a more surgical approach compared with the "sledgehammer" monetary policy actions the central bank has been taking in recent months.
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