Bank of Canada deliberations show complexity of rate decisions: economist

The Bank of Canada’s release of its deliberations concerning its latest interest rate decision shows how complex these considerations can be, according to an economist.

On Wednesday, the Bank of Canada released its summary of deliberations, which details what led to its recent decision to pause interest rate hikes. The document outlines the careful wording the bank choose, as well as its concern that core inflation is not falling fast enough.

“We have some evidence of weakness, but a lot of transitory factors moving through and yet inflation is still proving very sticky, especially on the core measure and that’s the bind that the bank is finding itself in now,” Dylan Smith, a senior economist with Rosenberg Research, told BNN Bloomberg in a television interview Wednesday.

“I think the challenge in the data is that it’s not providing a very strong signal.”