Bank of Canada should avoid another rate mistake: David Rosenberg

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It’s time for the Bank of Canada to stop being scared of its own shadow. The central bank made a mistake in one direction (as did most central banks) when it was late on the inflation surge, and now risks making a different mistake in the other direction.

At the March 6 policy meeting, the press statement concluded that “… the data point to an economy in modest excess supply.” Yet, it is pursuing a policy that would otherwise be more appropriate for an economy in an excess demand backdrop. This is no time for hubris.