Amid cooling inflation, the BoC should be 'comfortable' regarding its decisions: Economist

Following the release of Canada’s latest inflation data, one economist said he thinks the Bank of Canada should be comfortable with its actions thus far as it attempts to restore price stability.

According to Statistics Canada, the inflation rate cooled in February as the consumer price index was 5.2 per cent higher than the previous year, but markedly lower than the 5.9 per cent reported in January. February’s inflation figures marked the largest deceleration since April 2020. 

“Generally speaking, I think this is the type of report the governor [of the Bank of Canada] would look at and be reasonably comfortable about the decision that he's taken so far,” Jean-Francois Perrault, a senior vice-president and chief economist at Scotiabank, said in a television interview with BNN Bloomberg Tuesday. 

On March 8, the Bank of Canada held its policy rate at 4.5 per cent, but stated that it is prepared to raise rates again if economic circumstances change.