Governor Tiff Macklem acknowledged that the Bank of Canada underestimated inflation's persistence in 2021 and 2022, emphasizing the need for clearer communication about monetary measures.
The internal review revealed that the Bank of Canada could improve clarity regarding its asset purchasing strategies, distinguishing between actions aimed at market stability and those aimed at stimulating the economy.
The Bank of Canada must communicate the limited circumstances for extraordinary measures in future crises, tying guidance to inflation expectations and conditions clearly.
Macklem stated, "The Bank of Canada is a learning institution, and we must take on board the lessons from this unprecedented experience" to enhance future economic responses.
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