Bank of Canada deputy governor Rhys Mendes says allowing for a period of price declines may sound tempting, but it would ultimately be more painful for Canadians.
Mendes made the comments in a speech Tuesday in Charlottetown on the importance of keeping inflation at the two percent target.
His speech comes as the Bank of Canada declares victory on high inflation, but Canadians remain dissatisfied with higher prices across the economy.
“Even though it may seem counterintuitive—it would be painful for many Canadians if we were to try to bring about a period of price declines,” Mendes said in prepared remarks….