It ain't over 'til it's over, but there are promising signs that better days are ahead for everyone squeezed by inflation and interest rates.
That was the sentiment of the Bank of Canada, which held rates steady at 5% today, citing a sluggish Canadian economy that's slowing the rise of prices for many goods and services.
"Combined with the drop in gasoline prices, this contributed to the easing of ... inflation to 3.1% in October," the bank stated in its media release. "However, shelter price inflation has picked up, reflecting faster growth in rent and other housing costs along with the continued contribution from elevated mortgage interest costs."
Most analysts, such as CIBC's Avery Shenfeld and the Conference Board of Canada, said the statement aligned with market expectations that also call for interest rates to begin to drop in mid to late spring.
Shenfeld noted the bank no longer considers Canada's economy to be in "excess demand," though today's messaging included a warning that rates could rise again if we don't stay the course.
"Governing Council ... continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour," the media release said.