🚨Bank of Canada Update: Essential Highlights

The Bank of Canada stands firm on its policy rate and continues quantitative tightening. Check out these must-know takeaways:

1️⃣ Policy Rate & QT:

🎯 Overnight rate is held at 4.5%, Bank Rate at 4.75%, and the deposit rate at 4.5%
🔒 Quantitative tightening continues for a restrictive stance
📈 Ready to raise policy rate if needed to reach the 2% inflation target

2️⃣ Global Economic Situation:

🌍 Easing inflation: lower energy prices, normalized supply chains, tighter policy
⚖️ Core inflation in advanced economies indicates ongoing price pressures 🇺🇸🇪🇺 US & Europe growth is stronger than expected but set to weaken

3️⃣ Canadian Economic Outlook:

📈 Demand exceeds supply, tight labour market
🌱 Stronger-than-projected Q1 growth 
🔮 GDP growth weak in 2023, with gradual improvement in 2024
📊 Economy to grow by 1.4% in 2023, 1.3% in 2024, and 2.5% in 2025

4️⃣ Inflation Expectations:

📉 CPI inflation at 5.2% in Feb, dropping to ~3% mid-year
🎯 Gradual decline to 2% target by the end of 2024
⚠️ Challenges: slow expectation adjustments, elevated service price inflation & wage growth

The Bank is dedicated to restoring Canadian price stability, keeping a close eye on core inflation and key indicators.

🗓️Mark your calendar for the next overnight rate target announcement on June 7, 2023, and the Monetary Policy Report on July 12, 2023! 🔔🔥

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