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The Bank of Canada’s rate decision will reflect inflation’s difficult ‘last mile’
As the Bank of Canada prepares to make its first interest rate decision of the year on Wednesday, economists say headwinds in the “last mile” of the inflation fight will serve as a final hurdle before rate cuts can begin. Inflation has cooled significantly from highs of 8.1 per cent in the summer of 2022, thanks in part to the Bank of Canada’s rapid run-up in its benchmark interest rate. But while the first year of the central bank’s rate tightening cycle saw inflation drop more than five percentage points, the rate of annual price hikes has remained largely steady in the range of three to four per cent over ... (full story)