All the ducks are starting to line up. The Bank of Canada has been waiting for a period, not a month, where inflation is softening in order to trigger its first interest rate cut.
That appears to be just around the corner as we now have four consecutive months of softer inflationary numbers.
The latest came out this week which showed inflation at 2.7 per cent in the country. It was lower here in Saskatchewan – a fair bit lower actually at one per cent so we’ve been enjoying some better times lately – but it is the national numbers that count on this one. And, at 2.7 per cent, it is well within the central bank’s target range of two to three percent.
It has been trending downward for several months as the long-anticipated economic slowdown appears to be taking hold and bringing inflation down with it, despite unexpectedly strong job creation numbers last month. So, it appears the central bank may have all the ducks-in-a-row it needs to begin the process of lowering interest rates at its June session.
