Carolyn Rogers on productivity
From Is Canada in a recession? Why is debt growing? | Bank of Canada testimony · · Canada Info
“An economy that has high productivity can grow faster before it starts to create inflationary pressure. So that means an economy can heat up, it can get going, it can grow quickly and it's not going to create inflation, which means the bank will not have to intervene to try and damp down the economy to keep demand and supply in balance.”
On , Carolyn Rogers, Senior Deputy Governor at Bank of Canada, spoke about productivity during Is Canada in a recession? Why is debt growing? | Bank of Canada testimony on Canada Info.
About Carolyn Rogers
Carolyn Rogers, Senior Deputy Governor of the Bank of Canada, appeared before the Public Accounts committee on June 1, 2026, where she faced questions about Canada's productivity, debt servicing costs, and the money supply. During the hearing, Rogers stated that "money supply is created primarily by commercial banks when they lend" and that it moves "in response to demand in the economy." She also addressed the government's $59 billion in debt servicing costs, agreeing with a committee member's point that "money that is spent on debt servicing could be redirected to other things." Rogers described productivity as a "buffer" against economic shocks, noting that "an economy that has high productivity can grow faster before it starts to create inflationary pressure." On May 28, 2026, Rogers and Deputy Governor Toni Gravelle presented the Bank's Financial Stability Report. Rogers said the report "gauges the resilience of the Canadian financial system" and "explores key risks and vulnerabilities that could undermine that resilience." She identified high stock and corporate debt valuations, rising global sovereign debt issuance, and hedge fund activity in sovereign bond markets as areas of concern, stating that hedge fund leverage "with the backdrop of a more volatile geopolitical environment makes it more likely that that trigger event could happen and disrupt those markets." Rogers also noted emerging risks from artificial intelligence, which she said "may also increase the speed, scale, and sophistication of cyber attacks." She described the mortgage renewal wave as having caused less stress than feared, attributing this to household savings, wage increases, and lower interest rates. Rogers stated that "the shocks that are really dangerous are the things you never thought of happening."