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- Important- Source: Newswires