Citing stubborn inflation, Bank of Canada raises rate
“Consumption growth was surprisingly strong and broad-based, even after accounting for the boost from population gains. Demand for services continued to rebound. In addition, spending on interest-sensitive goods increased and, more recently, housing market activity has picked up,” the bank said in a news release. “The labour market remains tight: higher immigration and participation rates are expanding the supply of workers but new workers have been quickly hired, reflecting continued strong demand for labour. Overall, excess demand in the economy looks to be more persistent than anticipated.”
What that means for Greater Victoria’s economy, and whether a recession is unavoidable will be hot topics tomorrow, when the bank’s Deputy Governor Paul Beaudry speaks at a Chamber Business Leaders Luncheon.
