Posted 11/22/2023, 5:07:16 PM
Bank of Canada Signals Possible Pause in Rate Hikes as Inflation Pressures Ease
- Bank of Canada governor says "excess demand" that was fueling inflation is now gone from the economy
- Interest rates may now be high enough to tame inflation, but more hikes possible if price pressures persist
- Bank is watching underlying inflation trends to determine when rates could start falling
- Federal government's fiscal restraint in new update will be "helpful" for Bank's inflation fight
- New federal fiscal guardrails aim to keep budget deficits under 1% of GDP to aid inflation reduction