Signs of progress are seen in the Bank of Canada's efforts. inflation The deputy governor at the central bank described the progress in the bank's efforts as 'very encouraging,' but emphasized that they consider other factors in their interest rate assessment. interest rate path.
In February, the annual inflation rate dropped 0.1 percentage points to 2.8 per cent. This unexpected drop surprised most economists, who had predicted an increase in inflation.Toni Gravelle, deputy governor at the Bank of Canada, stated that the recent inflation decrease is positive, but cautioned that it's just one piece of data.
Toni Gravelle, a deputy governor at the Bank of Canada, shared his thoughts on the unexpected easing in price pressures after a speech in Toronto on Thursday. Bank of Canadabank.
'The number came out, very encouraging, but it’s one number,' Gravelle remarked.
Gravelle indicated that the Bank of Canada will thoroughly analyze the latest consumer price index figures to assess the trend of underlying inflation and other economic indicators.
In February, the Bank of Canada's preferred measures of core inflation decreased, but remained above three percent. Additionally, grocery price increases showed signs of easing, while gas prices rose and shelter inflation accelerated.
After the February inflation figures were released on Tuesday, many economists solidified their predictions of interest rate cuts starting in June.
The Bank of Canada's recent interest rate decision on March 6. The Bank of Canada's deliberations from its most recent interest rate decision on March 6 The governing council expects potential rate cuts later this year, provided the economy softens, as outlined in its forecasts.
When it announces its April rate decision, the central bank will also unveil a new monetary policy report with revised outlooks for inflation and economic growth.
Gravelle spoke to the CFA Society in Toronto on Thursday about normalizing the Bank of Canada's balance sheet.
