Manufacturers Key to Inflation Fight
Recently, CME officials met with the Bank of Canada and the federal government, urging both parties to help the manufacturing industry fight labour shortages and supply chain disruptions. Alleviating these dual challenges is instrumental to helping our sector increase production, drive down prices for goods, and ultimately reduce inflation. Higher interest rates curb inflation by reducing demand for goods and services and slowing the economy down.
“The Bank of Canada isn’t in this fight alone. Manufacturers have an important role to play, too,” said Dennis Darby, CME President and CEO. “We make the goods consumers want. When we can’t meet their demand, prices and inflation go up. If we are given the tools we need, we can increase our production and drive down inflation.”
With the Bank of Canada’s actions, policymakers must now do all they can to build a more productive economy with a greater capacity to deliver goods and services to Canadians.
Increasing the economy’s supply side is fundamental to growth and creates a more inflation-resistant economy.
“We want to strengthen our sector and see it grow so it can continue to drive our economy, improve prosperity, and build long-term resilience against future shocks,” added Darby. “Fixing immigration backlogs, streamlining the Temporary Foreign Worker Program, investing in our transportation and trade infrastructure are all must-dos.”