"If evidence begins to accumulate to show that inflation is not declining in line with forecast, we are prepared to raise policy rate further, Bank of Canada Governor Tiff Macklem said while testifying before the Standing Committee on Finance.
Key takeaways
"We’ve seen some evidence that our interest rate increases are starting to slow demand and rebalance our overheated economy."
"With inflation above 6%, we are still a long way from the 2% target, but inflation is turning the corner."
"Canadian economy remains overheated and clearly in excess demand, and this continues to put upward pressure on many domestic prices."
"Expect CPI inflation to fall to around 3% in the middle of this year and reach the 2% target in 2024."
"Global energy prices could jump again, pushing inflation up around the world."
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