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11 Jun 2024
Canada Staff Concluding Statement of the 2024 Article IV Mission
Inflation is declining steadily in the context of soft economic activity and a resilient financial sector. Against that background, the Bank of Canada has appropriately begun cutting policy rates. Canada’s public debt and deficits remain low in international comparison, and the recent introduction of quantitative fiscal objectives is welcome. That said, fiscal policy should be tightened, both to support the Bank of Canada’s efforts to bring inflation back to target and to rebuild buffers appropriately used during the pandemic.
