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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.

April 13, 2022

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Check out the rest of Stephen Tapp’s analysis here.