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MNI: BOC Still Needs Patience As Inflation Slows- Ex Staffer

(MNI) OTTAWA

Risks of flare-ups in housing and elsewhere remain, St-Arnaud says.

The Bank of Canada is likely to remain patient before cutting rates despite headline inflation having slipped back within the official target band because there are too many potential flare-ups especially from real estate, a former central bank and finance department economist told MNI.

“The economy has been a lot more resilient to rate hikes than expected,” said Charles St-Arnaud, who now works at the credit union network Alberta Central in Calgary. “That’s important for the Bank of Canada’s thinking, that well, there is some resilience. And it might give them comfort that we really don’t need to hurry up too much.”

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The Bank of Canada is likely to remain patient before cutting rates despite headline inflation having slipped back within the official target band because there are too many potential flare-ups especially from real estate, a former central bank and finance department economist told MNI.

“The economy has been a lot more resilient to rate hikes than expected,” said Charles St-Arnaud, who now works at the credit union network Alberta Central in Calgary. “That’s important for the Bank of Canada’s thinking, that well, there is some resilience. And it might give them comfort that we really don’t need to hurry up too much.”

Keep reading...Show less