BoC Tiff Macklem told a parliament committee, “we expect CPI inflation to fall to around 3% in the middle of this year and reach the 2% target in 2024.”
“For inflation to get back to 2%, the effects of higher interest rates need to work through the economy and restrain spending enough for supply to catch up.”
“The tightness in the labour market needs to ease, wage growth needs to moderate, and service price inflation needs to cool.”
“Inflation expectations also need to come down and businesses return to more normal pricing behaviour.”
“If those things don’t happen, inflation will get stuck above our 2% target, and additional monetary tightening will be required.”
