BoC governor Macklem says 2% inflation target is now in sight; we're not there yet but conditions increasingly appear to be in place to get us there
- Further declines in inflation are likely to be gradual, given push and pull on inflation in the coming months
- Next two or three quarters will be difficult for many; jobless rate is likely to increase further
- Still too early to consider cutting policy rate; inflation has come down but it's still too high
- As growth slows inflation pressures will ease, but we can't rule out bumps along the way
- Once we are assured we are clearly on a path back to price stability, we will be considering whether and when we can cut rates
- Economic growth stalled through mid-2023 and we expect it to remain weak into 2024
- We do expect shelter price inflation to moderate over time, but predicting the timing is difficult
- 2024 will be a year of transition; period of weakness will pave the way to a more balanced economy
- We expect growth and jobs to be picking up later in 2024 and inflation getting close to 2% target
- We don't expect next few years to be as volatile as the last few have been
- Governing council will continue to debate whether monetary policy is restrictive enough and how long it needs to remain restrictive
15 Dec 2023 - 17:30- Fixed IncomeImportant- Source: Newswires
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