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BoC On Excess Demand – Some Progress

CANADA
  • Latest: “The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. [...] Excess demand in the economy is easing”.
  • “The tightness in the labour market has continued to ease gradually. However, wage growth has remained around 4% to 5%.”
  • July: “Excess demand and elevated core inflation are both proving more persistent. […] Canada’s economy has been stronger than expected, with more momentum in demand. […] The economy will move into modest excess supply early next year before growth picks up to 2.4% in 2025.”

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