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'Sticky' Inflation Means Higher Interest Rates Could Last Longer Than Expected

June 26, 2023

Canadian Lawyer looks at the latest Bennett Jones Economic Outlook and why David Dodge does not expect any loosening of monetary policy in 2023. Rates will likely only come down gradually in 2024 and 2025, depending on the “stickiness” of inflation.

The Economic Outlook says, "a period of very low growth, but not necessarily a recession, is needed in the second half of 2023 and early 2024 to curb excess demand and bring inflation down . . . getting inflation back to target—for Canada to the middle of the one percent to three percent band—will not be an easy task."

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