by Wolf Richter
Wolf Street
It was obviously “unexpected.” But the Bank of Canada has been leery of this sort of mess showing up.
When the Bank of Canada cut its policy rates by 25 basis points earlier in June, it based that cut on the inflation rates that had cooled sharply, and it based further cuts on these trends continuing. But leery of just the sort of reversal inflation dished up today, BOC governor Tiff Macklem said at the press conference that future cuts would depend on two big Ifs: “If inflation continues to ease” (#1 IF), and if “our confidence that inflation is headed sustainably to the 2% target continues to increase” (#2 IF).