Bank of Canada’s Macklem: Inflation is continuing to become less broad-based

The Bank of Canada’s Macklem is on the wires saying:

  • At first glance, federal budget does not really change fiscal track since the Nov 2023 fall economic statement
  • Budget contains spending measures and new taxes; federal government’s commitment to stick to fiscal guard rails is helpful
  • Reiterates bank will be looking for evidence that the recent downward momentum in inflation is sustained
  • Canadian inflation is continuing to become less broad-based; things are moving in the right direction
  • Overall we see downside risks to the inflation outlook are lower than they were
  • There are some signs of stress in household finance, mostly in non-mortgage holders; delinquencies have moved up but they are not at alarming levels
  • Geopolitical tensions are a source of deep concern in the international community
  • If there is a spike in oil prices that is something we’ll have to take into account

This article was written by Greg Michalowski at Source