Governing Council estimates. Officials agreed that expectations for rate cuts later in 2023 are not the most likely scenario.
“Governing Council agreed that while the new economic projection was similar to January’s, there was a sense that the economy was proving a little stronger than expected,” said the summary. Members were concerned that the current pace of wage growth is not consistent with getting inflation back to 2% without a substantial increase in productivity.
Members agreed that it was important to continue to signal that the central bank is prepared to tighten policy further if needed., it was again coming in stronger than expected, particularly in the euro area and the United States.” “Governing Council assessed recent data and developments in Canada and judged them to be evolving broadly in line with their January projection. Headline inflation was coming down, and signs of a rebalancing of supply and demand were becoming evident. But Governing Council acknowledged that the labour market was still tight and the slowing in growth would likely come a little later.