After reading this article I see some things to consider..

The Canadian economy is currently going through a period of slower growth, which is necessary to reduce high prices. In the second quarter of 2023, the economy actually shrank by 0.2%, and this was due to a few reasons. People are spending less, especially on things like housing, partly because there have been wildfires in many parts of the country. Also, when interest rates went up, people and businesses borrowed less money, which affected economic growth. On a positive note, government spending and business investments helped keep the economy from shrinking even more. The job market is getting a bit less competitive, but wages are still rising by about 4% to 5%.

When we look at prices, they’re still going up. In June, the cost of living increased by 2.8%, but in July, it jumped to 3.3%. On average, prices are rising by about 3%, which is what experts predicted. Gasoline prices have gone up lately, so we might see more price increases in the short term. The core inflation rate, which doesn’t count things like energy and food, is also high at around 3.5%. This suggests that the basic prices we pay for things are not dropping much. If high inflation continues for a long time, it could become a big problem and make it hard to keep prices stable.

Thanks for reading

Stan Matwychuk

The original BOC article can be found here

The next scheduled date for announcing the overnight rate target is October 25, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report at the same time.