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The Bank of Canada is behind the curve, starts raising rates more aggressively to control inflation

The Bank of Canada is behind the curve, starts raising rates more aggressively to control inflation

With a major overshoot of inflation now confirmed, the Bank of Canada sees the economy running into a period of persistent excess demand. Even with today’s aggressive move, the Bank’s policy rate remains stimulative, and the broadening of price and wage pressures means medium-term inflation risks are rising.