Canadian inflation soared past estimates for the month of July. When combined with robust wage data and moribund productivity that add second-round drivers to inflation risk plus other reasons to expect inflation risk to remain pointed higher the outcome is such that the BoC needs to continue to raise its policy rate in my opinion. High for longer won’t cut it in a race against time through wage-setting exercises as inflation expectations remain above the BoC’s target. I’m of the ongoing view that politics and pressures aside, it needs to crush inflation risk and remain adherent to its principal mandate. It is at ... (full story)