Highlights of the Bank of Canada economic forecasts from Monetary Policy Report

<p>Bank of Canada monetary policy report forecasts:</p><p>CPI (Consumer Price Index): Sees higher inflation in 2024 and 2023 to remain elevated at 3.7%</p><ul><li>2023 CPI: Projected at 3.7%, matching consensus expectation (BoC's previous forecast was 3.5%).</li><li>2024 CPI: Projected at 2.5%, above consensus expectation of 2.3% (BoC's previous forecast was 2.3%).</li><li>2025 CPI: Projected at 2.1%, slightly above consensus expectation of 2.0% (BoC's previous forecast was 2.1%).</li></ul><p>GDP (Gross Domestic Product) Growth: Sees higher growth</p><ul><li>2023 GDP Growth: Projected at 1.8%, above consensus expectation of 1.3% (BoC's previous forecast was 1.4%).</li><li>2024 GDP Growth: Projected at 1.2%, above consensus expectation of 1.0% (BoC's previous forecast was 1.3%).</li><li>2025 GDP Growth: Projected at 2.4%, significantly above consensus expectation of 1.8% (BoC's previous forecast was 2.5%).</li></ul><p>Neutral Rate/Output Gap:</p><ul><li>The BoC maintains that the midpoint of the neutral range is within 2-3%, unchanged from previous estimates.</li><li>The BoC estimates that the output gap is between 0% and 1% in Q2. Previously, the BoC estimated that the output gap was between 0.25-1.25%.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.