March 1, 2024

The Queens County Citizen

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The Bank of Canada has found that inflation is worse than expected

The Bank of Canada has found that inflation is worse than expected

Deputy Governor Sharon Koji on Friday agreed that expectations on the outcome of inflation choking the Bank of Canada were old and less than realistic.

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San Francisco Federal Reserve Bank of Macroeconomics and Monetary Policy In a speech before the Coalition on the Federal Reserve Bank, the latter explained that Russia’s attack on Ukraine had turned expectations upside down.

“Russia’s invasion of Ukraine is exacerbating inflationary pressures on the world and in our country.

Despite everything, the Bank of Canada has not lost its target of bringing the inflation rate to the 2% target for the year. The first step in this direction came when the key rate was raised to 0.5% earlier this month, after spending two years on the ground at 0.25% to stimulate a pandemic-damaged economy.

“Our main goal and our unwavering determination is to bring inflation back to the 2% target. We have taken steps in this direction and will continue to do so, ”Ms Koji said, hinting at a possible increase in the key rate during the next update on April 13.

“Inflation is high in the country, conditions in the labor markets are tight and demand is picking up,” the specialist agreed, adding that a 3 to 4% increase in global inflation would indicate an additional $ 1,000 per family per year. Spending $ 2,000 per month.

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“My colleagues and I know that this situation is very difficult for low income families because they spend more on their income. […] Consumer products such as gasoline and food, “said Sharon Kojiki.

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