New inflation data could quell dovish Bank of Canada views

By Ben Cousins
BNN Bloomberg Economics
December 21, 2023
Category: Finance & Economics
Region: Canada

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”. 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 CPI held steady in November at 3.1%, instead of declining. Eric Lascelles at RBC Global Asset Management, said “Inflation came in hot, so that’s the counterpoint to all the dovish talk”. ….December’s inflation data is scheduled for release on Jan. 16, while the next Bank of Canada rate decision is set for Jan. 24.

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