From step: Low inflation poses hurdle for Bank of Canada
Friday releases from Statistics Canada illustrate the conundrum as it inches interest rates off their 25, that the Bank of Canada faces. Pretty much everything about the market is looking up — except, crucially, inflation.
Statistics Canada reported that the nation’s 12-month inflation rate sank to its lowest level in almost two decades in June, clocking in at a thin 1.0 percent, amid weaker gasoline rates. As it pursues its goal of inflation, that matches the base of the Bank of Canada’s inflation assortment of 1 to 3 per cent its group of comfort.