20 April 2006

Canadian Chamber Economic Update: Canada -- Inflation Report

The following note is extracted from an economic update by the Canadian Chamber of Commerce.

… Given capacity constraints, a tight job market and wage pressures, the Bank of Canada will remain vigilant. The next Fixed Announcement Date is on April 25 and the Bank of Canada is firmly expected to boost its key policy rate - the overnight rate - by another 25 basis points to 4.0%. It will be interesting to see whether core inflation can remain stable in the months ahead given soaring energy prices.