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BOC Sees Progress But Remains Concerned About Inflation Outlook

BOC
  • Bank of Canada maintains policy rate of 5% as expected, continues quantitative tightening.
  • "Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed."
  • The Bank says higher interest rates are clearly restraining spending and relieving price pressures.
  • "Data and indicators for the fourth quarter suggest the economy is no longer in excess demand."
  • The Bank remains concerned about wages which are still running at +4-5%, shelter price inflation has also picked up.
  • The BoC still wants to see further and sustained easing in core inflation.
  • No clear nod to potential shift to rate cuts.

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