What economists are saying about Bank of Canada's steep rate increase

“Fear of an unmooring in inflation expectations was evident throughout the release, with officials noting ‘surveys indicate more consumers and businesses are expecting inflation to be higher for longer, raising the risk that elevated inflation becomes entrenched in price- and wage-setting,’ implying that ‘the economic cost of restoring price stability will be higher.” said Karl Schamotta, chief market strategist at Corpay.

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