artificial intelligence<\/a> are here to stay, she said in a speech in Manitoba.<\/p>\n“When faced with a structural change … we have to adapt. We have to adjust our thinking, our forecasting and our decisions \u200cto the new reality,” she \u2060said.<\/p>\n
“My colleagues and I at the Bank are steeling ourselves for a tough job ahead.”<\/p>\n
The uncertainty fueled by U.S. trade policy is hurting \u2060business investment and that will lead to fewer jobs and anemic productivity, she said. The BoC says U.S. tariffs on key Canadian imports could permanently cut growth.<\/p>\n
A drastic reduction in the number \u200bof \u200bpeople coming into Canada could also hit growth, \u200bRogers said, adding it would take \u200ctime for the economy to adjust to lower immigration levels.<\/p>\n
Economists say immigration controls could reduce demand for goods and services, which could be good for alleviating housing pressures but could hurt companies.<\/p>\n
Rogers also cited the potential for AI to unleash productivity gains while acknowledging growing anxiety about the chances of disruption.<\/p>\n
“Canadians have faced a lot of economic upheaval over the \u200cpast five years, and the next five may \u200bnot be much calmer. Our economy is still facing \u200bshocks,” she said.<\/p>\n
The central bank and \u200bthe finance ministry jointly review the 2% inflation target every five \u200cyears, with the next session set for \u200bthis year.<\/p>\n
Rogers repeated the \u200bBoC’s stance that the monetary policy framework does not have to change but said the central bank would have to change how it implements it.<\/p>\n
Given the choppier \u200benvironment, the BoC is trying \u200cto better detect and assess supply shocks, incorporate more real-time data and be \u200bprepared to offer scenario analysis instead of a single baseline forecast for \u200bthe economy, she said.<\/p>\n
((Reuters Ottawa bureau))<\/p>\n
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