Inflation expected to top 8%, heralding another supersized rate hike

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Inflation expected to top 8%, heralding another supersized rate hike
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Inflation expected to top 8%, heralding another supersized rate hike Canada Economy Inflation

last week with the Canadian Federation of Independent Business, Macklem reaffirmed the central bank’s commitment to get inflation back to its two-per-cent target, the midpoint of a target zone of one per cent to three per cent.

Macklem added that the central bank expects the economy to grow 3.5 per cent this year before slowing to 1.75 per cent next year. Despite an expected economic slowdown and decades-high inflation, Macklem said he believes Canada can avoid a 1970s-style stagflation environment because back then, the economy had already been overheated in the years leading up to a decade of high inflation and disappointing economic growth.

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