Economist suggests that amidst declining inflation, the BoC can confidently stand by its decisions.

We regret to inform you that the data you asked for is currently unavailable. We suggest you to try again later.

Daniel Johnson from BNN Bloomberg wrote an article.

UBS Canada's Pierre Ouimet predicts favorable inflation data for the month of February, satisfying the Bank of Canada.

After the most recent announcement of Canada's inflation, an economist expressed confidence in the Bank of Canada's efforts to uphold stable prices.

Statistics Canada reported that the inflation rate experienced a drop in February compared to January. The consumer price index was up by 5.2% from the previous year, a noticeable decline from the 5.9% recorded in January. This marks the biggest slowdown in inflation since April 2020.

In my opinion, this report is something that the Bank of Canada governor would likely review and feel satisfied with regarding the choices he has made thus far," shared Jean-Francois Perrault, who holds the position of chief economist and senior vice-president at Scotiabank, while being interviewed on BNN Bloomberg on Tuesday.

The Bank of Canada decided to keep its policy rate at 4.5 per cent on March 8; however, it mentioned that it is ready to increase the rates if the economic situation changes.

During June 2022, inflation in Canada reached its highest point at 8.1 percent, however, predicting it has proven to be a challenge, according to Perrault.

According to him, forecasting inflation has been a tough task in recent years and the projection has often failed to accurately represent the actual inflation rate.

Currently, in Canada, the situation regarding inflation has been relatively positive. It seems to be moving in the predicted direction and has been performing well for the past few months.

Perrault predicts that the Bank of Canada won't decrease interest rates this year while they aim to bring inflation back to their desired two per cent target.

In my opinion, the battle against inflation is not yet finished. Eventually, there will be a reduction in interest rates. Based on our observation, it appears more improbable that the reduction will happen within this year, but rather in the beginning of the next year.

Regarding the banking updates in the United States, it is possible that if the economy becomes even weaker than expected, interest rates may need to be lowered sooner rather than later in Canada, the U.S, and other regions of the world.