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Easing labour shortages support Bank’s pause

Governor Tiff Macklem stressed on Wednesday that the pause in the Bank of Canada’s tightening cycle is conditional on looser conditions in the labour market and a fall in inflation expectations. The CFIB Business Barometer showed evidence of both a day later, with labour shortages easing significantly and selling price expectations falling to an 18-month low. This adds to our sense that the Bank’s next move will be a rate cut.

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