Posted 12/12/2023, 11:43:31 AM
BoC Concerned Falling Rates Could Delay Inflation Fight
- Recent drop in long-term borrowing costs makes it harder for Bank of Canada to tame inflation, could delay rate cuts
- Easing financial conditions could reignite housing imbalances, drive inflation
- High wage growth, declining productivity are concerns regarding inflation outlook
- Markets expect BoC to start cutting rates in 2024, but bank says it's too soon to consider cuts
- BoC trying to push back against market rally, more markets rally the less likely central bank will ease policy