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Scotiabank: The Bank of Canada may overlook some key points

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Derek Holt, Vice President of Capital Markets Economics at Scotiabank, Canada, stated that the Bank of Canada has been encouraging to avoid dove tendencies. He also expressed satisfaction with the overall communication style of the bank. But he still questions some views. Firstly, the central bank continues to inappropriately ignore the impact of various short-term shocks on the economy, from wildfires, strikes to weather, and fully attribute the summer economic slowdown to the view that interest rate hikes are cooling demand. In addition, the bank mistakenly believes that the growth of per capita real consumption has stagnated, and the growth of labor force has exceeded the growth of employment. This is another sign that tightening policies are working, and a large part of the population change caused by the surge in immigration is composed of students and temporary workers.
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