The Bank of Canada switches to manual

When the Bank of Canada increased its target for the overnight rate to 4.25% last May,  it indicated that the target was going to stay there for some time. The time may be coming soon – CPI core inflation has been above 2% for several months now:
Cpi0307

It’s unlikely that the Bank will increase interest rates next Tuesday, but it would appear that they can’t leave monetary policy on autopilot for much longer.

One comment

  1. embutler's avatar
    embutler · ·

    fer sure they are fighting the battle of the strong dollar…