New inflation data could quell dovish Bank of Canada views: economist
BNN Bloomberg
Canada’s November inflation numbers could quell the dovish tone from the Bank of Canada’s recent rate deliberations, an economist cautioned Wednesday.
The Bank of Canada on Wednesday released the summary of deliberations for its Dec. 6 rate decision. At that meeting, the central bank’s governing council concluded that “recent data pointed in the right direction” and said the odds of further interest rate hikes have fallen, the notes revealed.
This marks a dovish shift in tone from the Bank of Canada – but the deliberations took place before Statistics Canada released its latest inflation data, which showed the consumer price index held steady in November at 3.1 per cent, instead of declining as most economists had expected.
Eric Lascelles, chief economist at RBC Global Asset Management, said the new inflation numbers could prompt the Bank of Canada to reconsider its tone.
