BoC: Inflation data seen as neutral – Danske Bank
Danske Research Team notes that Canadian headline inflation rose to 2.4% year-on-year in March, slightly below expectations, while core measures stayed stable. Governor Macklem is not worried about a temporary rise in inflation expectations, and the bank expects next week’s Bank of Canada (BoC) meeting to deliver a rate hold, consistent with current market pricing.
Slight inflation rise unlikely to shift policy
"In Canada, March headline inflation rose to 2.4% y/y (prior: 1.8%), slightly below expectations."
"The Bank of Canada's closely watched core measures remained stable, and Governor Macklem stated on Friday that the central bank is not concerned about a temporary rise in inflation expectations."
"The print is likely to be neutral for next week's Bank of Canada meeting, where we expect a rate hold in line with market pricing."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
