The Bank of Canada’s Macklem is on the wires saying:
- At first glance, federal budget does not really change fiscal track since the Nov 2023 fall economic statement
- Budget contains spending measures and new taxes; federal government’s commitment to stick to fiscal guard rails is helpful
- Reiterates bank will be looking for evidence that the recent downward momentum in inflation is sustained
- Canadian inflation is continuing to become less broad-based; things are moving in the right direction
- Overall we see downside risks to the inflation outlook are lower than they were
- There are some signs of stress in household finance, mostly in non-mortgage holders; delinquencies have moved up but they are not at alarming levels
- Geopolitical tensions are a source of deep concern in the international community
- If there is a spike in oil prices that is something we’ll have to take into account
This article was written by Greg Michalowski at www.forexlive.com.