Economics
Bank of Canada Sees ‘Good Rebound’ Despite Rising Inflation Risk
- Macklem expects strong second half after shock contraction
- Supply chain hurdles, price pressures proving more persistent
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Bank of Canada Governor Tiff Macklem said the economic recovery is on track despite disappointing output growth, but warned there’s a risk high inflation could prove more persistent than expected.
Gross domestic product suffered a shock contraction in the second quarter, and data since then suggest economic growth in the next three-month period will fall short of the central bank’s forecast for a 7.3% annualized gain.