Bank of Canada’s next move: what top economists are saying
Andrew Grantham, senior economist at CIBC in Toronto, went further, noting that bond yields moved before Tuesday’s release on the back of Macklem’s weekend remarks.
“It’s possible that a first interest rate hike could come earlier than the January move we previously forecast,” he said.
Dr. Sherry Cooper, Chief Economist at Dominion Lending Centres in Canada, read the September data as confirmation that energy is not yet spreading into broader price growth.
“Today’s inflation report reinforces our view that higher gasoline prices temporarily boost headline inflation while further eroding household purchasing power. However, these energy-driven increases, largely tied to geopolitical tensions, are unlikely to trigger a broader resurgence in underlying inflation,” she said.
On the Bank’s next move, Cooper was direct: “The September data support our base-case scenario that the Bank of Canada will remain on hold at its October 28 meeting. Policymakers will continue to closely monitor incoming inflation data and stand ready to tighten policy if price pressures broaden and become more persistent. Still, for now, underlying inflation trends in Canada remain consistent with a patient, wait-and-see approach.”
