Bank of Canada urges increased business investment for productivity growth

Summary: The Bank of Canada urges businesses to increase investment for productivity growth to combat inflation. Senior Deputy Governor Carolyn Rogers emphasizes the urgency, citing low productivity due to insufficient investment and competition. Inflation threats are rising due to globalization decline, demographics, and climate change. Canadian productivity lags behind global competitors. Labor productivity rose 0.4% in Q4 2023 after a decline, with an annual decrease of 1.8%.

Full article