Bank of Canada held its overnight rate at 5% and maintained its quantitative tightening policy, citing “risks to the outlook for inflation, particularly the persistence in underlying inflation.”

On top of its previously stated concern on elevated shelter cost pressure, the central bank in its post-meeting statement added mentions of persistent underlying inflation signs as an area of attentions.

“Underlying inflationary pressures persist: year-over-year and three-month measures of core inflation are in the 3% to 3.5% range, and the share of CPI components growing above 3% declined but is still above the historical average.”

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