At a conference hosted by the Canadian Chamber of Commerce, the Bank of Canada governor said business investment, particularly in information and communications technology, would be key in driving productivity and reducing inflation as the country recovers from the pandemic. (The Logic)

Talking point: Macklem said the central bank expects business investment in Canada to pick up, but warned that the gap between investment by U.S. and Canadian firms has widened over the last decade. “It’s imperative that businesses in Canada follow through on these plans or risk losing out to US competitors,” Macklem said. “For the economy as a whole, investment is critical to non-inflationary growth.” His comments come as inflation in Canada reaches its highest level in decades—“too high,” Macklem said. In a closely watched announcement in January, Macklem held the Bank of Canada’s key interest rate steady at 0.25 per cent, but signalled its intention to raise rates this year to rein in price increases.