Much of this price pressure reflects the global economic impacts of COVID-19. We currently operate in a world of higher oil and energy prices, and the impact of global supply bottlenecks. The ‘supply capability’ of the global economy is impaired.
But of course, we also want to ensure that this is done in a way that preserves the stability of the financial sector. Appropriate safeguards and sound policies aimed at fostering financial stability improve overall economic performance. The Bank of Canada is helping to promote financial stability in a number of ways.