Canada's inflation rate dipped in December, but a leading economist warns that the Bank of Canada will likely prioritize stimulating the economy over immediate inflation control, given the looming threat of US tariffs and slowing growth.
Charles St-Arnaud, chief economist with Alberta Central and former economist of Bank of Canada , talks about the impact of Trump tariffs on Canada ’s outlook.
“But when we look at measures excluding taxes, it’s actually increasing; it actually accelerated to 2.2 per cent, slightly higher. So, it’s clear that without the tax holiday, inflation would have accelerated in the country.” St-Arnaud said that in the coming days, the bank will be weighing how its decision could impact both the inflation picture and the broader Canadian economy, which may soon be caught in the middle of a trade war with the U.S.
INFLATION CANADA INTEREST RATES BANK OF CANADA TARIFFS
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