What is the policy response by the Bank of Canada to an inflationary gap in one region of Canada (e.g. the West)when at the same time a recessionary gap exists in another region of Canada (e.g. Ontario)?

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The Bank of Canada responds to the average level of inflation in the country and implements a single monetary policy. This approach is based on the assumption that economic shocks affecting one region will eventually spread to other regions, and that the economy as a whole operates as a single entity. Thus, the Bank of Canada aims to set monetary policy at a national level that will stabilize inflation and output growth across the country as a whole, rather than targeting different regions separately. This means that the Bank may not be able to address specific imbalances between regions or industries, but instead aims to keep inflation within an acceptable range for the entire economy.

What Is the Policy Response by the Bank of Canada