BoC: Economy Weak, Excess Supply to Persist; Energy Prices Not Seen as Inflation Risk
The Bank of Canada stated that economic activity remains weak and uncertainty over U.S. trade policy continues. The central bank also indicated it will not allow higher energy prices to become persistent inflation, and expects the economy to stay in excess supply even after a rebound.
The Bank of Canada highlighted that economic activity in the country has been weak, with persistent uncertainty regarding U.S. trade policy. The central bank's Governing Council emphasized that it will not let higher energy prices become a source of persistent inflation.
Even if there is some rebound, the BoC expects the economy to remain in excess supply. The comments point to a cautious outlook for Canada's growth and inflation trajectory.
Source: First Squawk