Bank of Canada’s Macklem: Inflation is continuing to become less broad-based

The Bank of Canada’s Macklem is on the wires saying:

• At first glance, federal budget does not really change fiscal track since the Nov 2023 fall economic statement
• Budget contains spending measures and new taxes; federal government’s commitment to stick to fiscal guard rails is helpful
• Reiterates bank will be looking for evidence that the recent downward momentum in inflation is sustained
• Canadian inflation is continuing to become less broad-based; things are moving in the right direction
• Overall we see downside risks to the inflation outlook are lower than they were
• There are some signs of stress in household finance, mostly in non-mortgage holders; delinquencies have moved up but they are not at alarming levels
• Geopolitical tensions are a source of deep concern in the international community
• If there is a spike in oil prices that is something we’ll have to take into account

This article was written by Greg Michalowski at www.forexlive.com.