Sharon Kozicki on monetary policy
From Speech by Deputy Governor Sharon Kozicki / Discours de la sous-gouverneure Sharon Kozicki · · Bank of Canada - Banque du Canada
“The Bank of Canada has one tool, the policy interest rate, and it is challenging to stimulate demand while simultaneously trying to reduce price pressures caused by supply-side shocks such as tariffs, which raise costs and make Canadian firms less competitive.”
On , Sharon Kozicki, Deputy Governor at Bank of Canada, spoke about monetary policy during Speech by Deputy Governor Sharon Kozicki / Discours de la sous-gouverneure Sharon Kozicki on Bank of Canada - Banque du Canada.
About Sharon Kozicki
Sharon Kozicki, Deputy Governor of the Bank of Canada, has continued to emphasize the importance of direct engagement with Canadians to inform monetary policy decisions. In a July 2025 speech before the C.D. Howe Institute, she stated that when Governing Council is better informed, it makes better decisions for Canadians. She noted that as the bank navigates uncertainty, she and her colleagues will continue reaching out to those they serve. In earlier remarks, Kozicki described the bank's use of quantitative easing (QE) during the pandemic as a tool with a "very high bar" that would not be used before exhausting the overnight interest rate, adding that the current balance sheet is estimated to be about the right size after the quantitative tightening cycle. Kozicki has also highlighted the value of non-traditional data and direct conversations to supplement traditional economic statistics. During a visit to Ottawa in late 2024, she said that while data is about the past, talking to people provides a better sense of how things are changing and what the future might look like. She has discussed the bank's role in explaining inflation and monetary policy to the public, stating that the bank has one tool—the policy interest rate—and that it is challenging to stimulate demand while reducing price pressures caused by supply-side shocks such as tariffs. Kozicki has also noted that interest rates alone cannot solve Canada's shortage of entry-level affordable housing.