Finance Minister Siobhan Coady says Bank of Canada Governor Tiff Macklem believes the inflation rate will continue to drop into 2024 in response to measures taken in 2023.
The Bank of Canada increased interest rates throughout the last year in an attempt to cool an overheated economy and bring inflation back below the 2 per cent targeted rate.
Coady and other provincial finance ministers met with Macklem in December to get an update on the fiscal situation, and she says he indicated that interest rates could start dropping in the new year.
While interest rates are expected to remain elevated in the early part of the year, Macklem anticipates that they’ll start to drop as inflation drops.