RE:Next week CPI and FED rate decision...From the Financial Post... gotta say i agree.
The Financial Post reports in its Friday edition that in a span of a couple of months, talk about Canada's economy has gone from recession worries and interest rate cuts to things being too hot to handle. The Post's guest columnist Theo Argitis writes that last week, Statistics Canada released GDP data that showed a much more resilient economy at the start of 2023 than anyone had anticipated. On Wednesday, Bank of Canada Governor Tiff Macklem signalled his patience had come to an end. After keeping borrowing costs on hold for five months, BOC officials raised their policy rate, thus breathing new life into what was already one of the most aggressive monetary policy tightening cycles ever. Overnight, tens of thousands of households and small businesses became poorer with the real prospect of even more hikes to come. The sudden swing in the policy landscape illustrates the extent to which uncertainty remains the order of the day for the nation's economic picture, making it tough to assess the outlook with much conviction. Mr. Argitis says there is a diminished confidence the folks at the BOC can engineer a careful calibration of policy that both limits damage to the economy and controls inflation.