The Bank of Canada allowed a deviation from the generally accepted trajectory of rates

The deputy governor of the Bank of Canada, Paul Beaudry, said that the central bank intends to return inflation to the target level and will do so even if the parameters of its monetary policy differ from the policy parameters of other central banks.

In January, the regulator raised the key rate to the highest in 15 years (4.5%) and became the first of the key central banks to announce their intention to refrain from raising it further while inflation slows down in accordance with the forecast.

According to the forecast of the Bank of Canada, by the middle of this year, inflation should slow down to about 3% from the current rate of 6.3%, and next year it should return to the target value of 2%.

Baudry also noted that the floating exchange rate of the Canadian dollar, which the markets set «in accordance with the forces of supply and demand», gives the central bank flexibility in determining a path different from that of Canada's trading partners.

At the same time, the governor of the Bank of Canada, Tiff Macklem, said during yesterday's speech that the country's economy is still overheated, and the labor market is too strong, which makes it possible to continue raising rates.