How immigration could be impacting the Bank of Canada's efforts to bring down inflation via financialpost
An increase in immigration could be one complicating factor keeping inflation higher for longer and stoking demand, Bank of Nova Scotia economist Rebekah Young said.
“A lot of things are different now,” she said. “The current juncture that we are in, getting inflation back to two per cent is still fraught with uncertainty.” “If you start an economy with excess demand you add both demand and supply, you are still in excess demand,” Macklem said. “What we’re seeing is that the excess demand in the economy is more persistent than we thought and so we’ve raised rates in June and July.”Article content
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