Inflation data will cause Canada’s bank to think twice?

It happened so often that many have come to expect. But will the latest inflation data conclude the parade of interest rate discounts at the Canada Bank?

On March 18, statistics Canada reported that inflation jumped to 2.6% in January, well above the consensus 2.2%.

“We were waiting for a slight tick due to the end of the fiscal holiday, but 2.6 (percent) is certainly greater than what inflation has been for some time,” Economist RSM Canada, you Nguyen said CTV News.

In a economic update issued on the same day, the main economist of the RBC, Claire Fan, says it can be too early to say if this changes the way for Boc.

“No matter how much these signs are alarming, they are too early to be related to tariffs and they are more likely a power gathering product in consumers’ expenses from the end of last year,” argued fan. “The continuation, the main inflation will continue to be influenced by the unique factors, because the Canadian import tariffs increase the import costs, but the removal of the carbon tax decreases, especially for the energy products, starting in April. With another 25 basic points in March, the Central Bank said that the support of the interest should not be of the interest rate should not be. of inflation of 2% longer.

The economist did not exclude the possibility of another interest rate in two weeks.

“We expect Boc to take into account all these moving parties, including the new round of wider” mutual “rates that the US administration threatened against all the commercial partners for April 2, when it made the next decision in April,” she said.