Canada: Finish line for this tightening cycle likely lies in the 2.25-2.5% range – CIBC By MSalordFX BOC Banks
Key Quotes:
“In practice, as they begin a tightening cycle, central bankers don’t know with certainty where the neutral rate lies, but they know it when they see it. A slowing in the economy that threatens to take the economy away from a starting point of full employment, or a drop in inflation to below target, can be signposts that rates are above neutral.”
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