Demand in that country continues to steam ahead and to push hard against the limits of production capacity. And signs of price and wage pressures have become more visible. That is why the US Federal Reserve has raised interest rates six times in the past 12 months to cool down the economy.
The Bank of Canada has also been concerned that the greater-than-expected US demand for our exports, along with the strong momentum of spending by Canadians, could lead to undue pressure on our production capacity and consequently on future inflation in Canada.