Posted 4/8/2024, 11:37:29 AM
Bank of Canada Cautious on Rate Cuts Despite Inflation Progress
- Bank of Canada is making progress on bringing down inflation, but still cautious about rate cuts due to credibility concerns
- Earlier inflation forecasts were too low, hurting central bank's credibility
- Premature rate cuts could cause inflation to spike again, which would further damage credibility
- Canada's economy isn't weak enough yet to necessitate rate cuts
- Cutting rates now could fuel housing market and political criticism
