Bank of Canada Deploying Forecast ‘Fiction,’ Scotiabank Economist Says
- Macklem’s tactics seen as form of ‘stealth forward guidance’
- Its targets are housing market and medium-term rates, he says
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The Bank of Canada is using its economic forecasts to try to prevent medium-term rates from falling too much and stoking more housing market speculation, according to a top economist.
Derek Holt, head of capital markets economics at Bank of Nova Scotia, described Governor Tiff Macklem’s tactics as “stealth forward guidance” after the central bank raised its benchmark rate to a 22-year high of 5% on Wednesday.