The Bank of Canada’s deputy governor, Toni Gravelle, stated on Thursday that the inflation figures for February were “very encouraging.” He also mentioned that the bank would examine a larger range of data prior to its next interest rate decision on April 10.
In an attempt to control inflation, which surged far above the bank’s 2% target, the bank hiked rates to a 22-year high of 5%.
Along with core inflation indicators that the Bank of Canada constantly monitors, consumer prices in Canada unexpectedly fell to 2.8% in February. This marked the lowest level in eight months.
“Very encouraging, but it is one number,” Gravelle said, addressing a business audience in Toronto over the inflation print.
He stated that when the central bank determines the estimates it will provide on April 10 along with the rate announcement, it will consider the data from February. Additionally, it will conduct an overall analysis of past inflation figures.
According to him, the bank would also examine additional macroeconomic statistics. These statistics include excess supply, wage growth, company pricing practices, and inflation expectations.
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