Global inflation is easing, and lower rates are expected, according to the Bank of Canada Governor. Monetary policy is becoming less restrictive as central banks tackle inflation. However, a return to pre-pandemic interest rates is unlikely due to concerns about rapid inflation. The central bank is wary of potential supply-side shocks that could disrupt the economy. Despite worries about inflation, elevated global interest rates indicate a healthier economic outlook, emphasizing the need for productivity-driven growth in Canada.
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