The opinion piece by David Rosenberg argues against a Bank of Canada rate hike, even though markets are pricing a hike next week as a near certainty. He says headline inflation near 3% for three straight months stems mostly from gasoline prices, up 28% over the past year, in a global supply shock, while core inflation measures are at or below 2%. He points to weak domestic conditions, including a roughly 1% trend in real GDP growth, more than 40,000 jobs lost this year, a contracting housing market, and wage growth slowing to 2.3% year over year from 3.3% a year earlier. Job vacancies have been flat for seven consecutive months, and collective bargaining agreements average about 3% a year without cost-of-living clauses. In his view, a rate hike would squeeze real incomes and consumer spending, which accounts for around 60% of the economy.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Will Tiff Macklem play with economic fire ?
Read the original on financialpost.com ↗
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Canadacentral bankinflationinterest ratesexchange ratesUSDCAD
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Related tickers and likely impact
USD/CAD
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/22/2026 | 1.40091 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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