Jeremy Kronick, director of monetary and financial services research at the C.D. Howe Institute, tells BNN Bloomberg that elevated inflation expectations could be a reason for the jump in household spending in today’s Q1 GDP data. He says lower business spending makes him less optimistic about improvement in productivity. On the BoC’s rate meeting next month, he says the central bank may choose to see if future data continues to support tightening before hiking rates again.
Consumers bring forward spending if they expect continued inflation: C.D. Howe’s Jeremy Kronick
May 31, 2023
