Experts say inflation report supports one final Bank of Canada rate hike before pausing
BNN Bloomberg
Canadian inflation slowed in December and experts think this could support a final policy rate hike by the Bank of Canada next week, before pausing its aggressive interest rate strategy.
On Tuesday, Statistics Canada reported the consumer price index (CPI) rose 6.3 per cent on a year-over-year basis in December. This was slower than the 6.4 per cent gain that economists had anticipated.
Randall Bartlett, senior director of Canadian economics at Desjardins Group, said he thinks this report won’t have a dramatic impact on the Bank of Canada’s rate decision on Jan. 25.
“I don't think it changes anything in terms of our call and market positioning for the Bank of Canada's rate decision…the Bank of Canada still has a long way to go to get inflation back down to its 2.0 per cent target.” Bartlett said in an interview on Tuesday.
