Inflation will fade into the background as it settles at 2%.This will allow Canadian consumers and businesses to spend and invest with confidence.If the economy evolves broadly in line with out forecast, it’s reasonable to expect further rate cuts.We will take decisions one at a time.If the Bank hadn’t raised rates, long-term inflation expectations may not have remained stable.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
