some economists believe the Bank of Canada may be habitually overestimating inflation because the central bank is focusing too much attention on traditional factors that cause prices to rise -- like a tight labour market and booming domestic demand -- and not enough on globalization and international competition.
Yep I have said it before the Bank of Canada is stuck in the Mulroney era. Leave well enough alone, David Dodge. But of course being a monetarist like he is he won't.Bank of Canada expected to raise interest rates which will result in;
"That calls into question the Bank of Canada's own assertion that core inflation was going to be back at the two per cent threshold by the third quarter," said TD Securities chief strategist Marc Levesque. "It looks like the bank may have a bit more wiggle room on the inflation front, so I think this just adds to the likelihood that it could, in fact, choose to take a pass and do nothing." "Tame core inflation, a tight-as-a-drum labour market, healthy retail sales, a firm Canadian dollar, a red-hot economy in the west... what's a central bank to do?" asked Avery Shenfeld, senior economist with CIBC World Markets.
Leave well enough alone. Geez does it take an anarchist to tell the capitalists how the market works? Guess so.
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