Prices for many goods and services are rising quickly, and this is making it harder for Canadians to make ends meet—particularly those with low incomes. Prices for food, gasoline and housing have all risen faster than usual. We expect inflation will remain high through the first half of 2022 and then move lower.
This balance of risks informed the decision of the SARB’s Monetary Policy Committee (MPC) to raise the policy rate by 25 basis points in November 2018, reversing a cut of a similar magnitude in March of the same year.