November 19, 2013 / 10:59 PM / 6 years ago

Canada-U.S. price gap not due to market failure: Bank of Canada

A woman carries shopping bags during the Christmas shopping season in Toronto, December 7, 2012. REUTERS/Mark Blinch

OTTAWA (Reuters) - The fact that some retail goods are cheaper in the United States than in Canada, a sore point for Canadian consumers, is not due to a market malfunction, a senior Bank of Canada official said on Tuesday.

In a speech, Bank of Canada Deputy Governor John Murray outlined several reasons for the cross-border discrepancy in prices.

“While significant price discrepancies exist, the reasons for them can largely be explained and are not evidence of serious market failure,” he said in the prepared text of a speech he was giving in Sackville, New Brunswick.

“Market forces are at work and are generally pushing prices and the exchange rate in the right direction.”

Reporting by Louise Egan; Editing by Doina Chiacu

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