The article discusses the latest inflation report from Statistics Canada, which shows that inflation has cooled down further in October. The Canadian economy is experiencing a slowdown, and this cooling inflation rate is likely to influence the Bank of Canada’s decision on interest rates.
Several economists are quoted in the article, sharing their views on what the data means for the Bank of Canada:
- Some economists believe that the cooling inflation will lead to a hold or even a cut in interest rates by the Bank of Canada.
- Others think it may be too early for the Bank of Canada to declare victory and signal that it is no longer considering rate hikes.
The article highlights the views of various experts, including Charles St-Arnaud from Alberta Central, Leslie Preston from TD Economics, Bryan Yu from Central 1 credit union, Claire Fan from RBC Economics, Simon Harvey from Monex Europe and Canada, and others. They provide a range of opinions on what this means for interest rates in Canada.
Some key points mentioned in the article include:
- The continued deceleration in headline and underlying measures of inflation.
- The broadness of inflation and strong wage growth.
- The likelihood of another rate increase being practically eliminated.
- The expectation that it may still be too early for the Bank of Canada to officially declare victory.
Overall, the article suggests that the cooling inflation will likely influence the Bank of Canada’s decision on interest rates.
