21 February 2014

It should be noted that Reuters survey show many analysts expected, on average, both total and core inflation of 1.3% on the year and 0.1% on the month. Canadian inflation hasn’t been as high as 1.5% since June 2012.

The Bank of Canada’s target inflation rate is 2%, and the central bank needs to keep it within 1-3% limits. It means the Bank has to balance between its concerns about low inflation and the possible effect future monetary stimulus may have on the real estate prices and household debt levels.

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