BoC: Tightening Warranted If Inflation Spreads
Bank of Canada members agree that monetary policy tightening is warranted if inflation data shows evidence of spreading inflation pressures
- Ahead Of June Rate Decision, Members Agreed That MonPol Will Need To Remain Nimble - Members Agreed Economic Situation Presented A Dilemma For MonPol - If USMCA Negotiations Are Unfavourable, Its Effects On Jobs & Investment Could Be Felt More Broadly Through Canadian Economy - Members Agreed The Economy Was Weak, Operating In Excess Supply - Members Agreed There Was Slack In The Labor Market, But The Economy Was Not In Recession - Members Noted A Favourable Outcome To USMCA Negotiations Could Restore Some Certainty And Potentially Boost Investment