He says that decades-high price pressures would continue to abate, which should allow the Bank of Canada to halt its policy rate hike at 4.5 percent. “The impact of what has already been done in 2022 will really start to have an impact by the end of the second quarter or during the second quarter of 2023. I think this also aligns with analysis we’ve already seen from the Bank of Canada, that prices and margins will respond to the tightening that has already taken place by sort of the middle of the year, but certainly by the end of the second quarter.”
The Financial Post writes that Bennett Jones Economic Outlook, "expects that inflation should return to the central bank’s two percent target by the end of 2024, but the Bennett Jones team is wary of uncertainties stemming from China’s wavering zero-COVID policy and the impacts of the Russian invasion of Ukraine. At that point, Bennett Jones projects that the economy will grow by two percent."