Thank you very much, Mr. Chair.
Welcome, Governor and Senior Deputy Governor. It's nice to have you here for the first time. This is a very important study for us, and we very much value the Bank's view on these issues. Inflation is affecting the everyday lives of Canadians.
Governors, it's the first time I've seen you since your appointments. Congratulations.
Our time will go by quickly, so I'll ask for your co-operation to be as brief in your answers as possible, and I'll try to be brief in my questions.
Governor, in your speech today and what you've just outlined, you're starting to paint a picture of a different world, at least one that you thought might exist a year ago or even just in October. If you listen to the finance department today, their world view seems to diverge; it's a bit different.
The finance department is telling us that inflation is still temporary, that it's beyond the government's control and that the economy needs more investment and stimulus. We all know that the plan is for some fairly large deficit spending planned in the next budget.
Today, you outlined that the risks of inflation are here to stay, that they're lingering, that we can expect more interest rate hikes to deal with these risks, and that the economy is robust and the slack has been absorbed, which means it is operating near capacity. The question is this: Have you made your views on this well known to the government? Have you warned the Department of Finance of the risk to inflation of continued stimulus and large deficit spending?