The Bank of Canada has left its policy rate unchanged at 5% as expected. The accompanying statement acknowledges that fourth quarter GDP grew more than expected, but recognises that there is more labour market slack emerging, due to rapid population increases, and this should help to dampen wage pressures. Nonetheless, they remain concerned about inflation with BoC Governor Tiff Macklem stating that “future progress on inflation is expected to be gradual and uneven, and upside risks to inflation remain. [The] Governing Council needs to see further and sustained easing in core inflation”. Given this backdrop “It’s ... (full story)