Canada: Finish line for this tightening cycle likely lies in the 2.25-2.5% range – CIBC By MSalordFX BOC Banks
Key Quotes:
“In practice, as they begin a tightening cycle, central bankers don’t know with certainty where the neutral rate lies, but they know it when they see it. A slowing in the economy that threatens to take the economy away from a starting point of full employment, or a drop in inflation to below target, can be signposts that rates are above neutral.”
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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