Bank of Canada sounds alarm on low productivity, cites inflation risks

The Bank of Canada (BoC) on Tuesday said businesses urgently needed to boost investment to increase productivity, saying this would help insulate the economy against the threat of inflation. "I'm saying that it's an emergency – it's time to break the glass," Senior Deputy Governor Carolyn Rogers told a business audience in the Atlantic province of Nova Scotia. "Increasing productivity is a way to protect our economy from future bouts of inflation without having to rely so much on the cure of higher interest rates."