The Bank of Canada this week raised their policy interest rate a quarter of a percentage point to 4.5%. It’s the smallest increase since the central bank began raising the benchmark rate last March. Tiff Macklem, the Governor of the Bank of Canada, says it marks the start of a “conditional pause” on interest rate hikes. Scotiabank’s Chief Economist, Jean-François Perrault returns to the podcast to explain what this means, what it signals for the months ahead and when we might see interest rates start to come down. 

Key moments this episode: 

00:58 — Why the Bank of Canada raised rates again after hinting at a pause in December 

2:10 — Why the central bank’s pause on increases is the right move 

3:32 — Inflation impacts on consumers 

6:06 — Will the central bank hit its inflation target this year? 

7:39 — Where will inflation be more persistent? Food? 

8:49 — The economy is “stalled.” Does that mean recession? 

10:50 — What everybody is wondering about: when will interest rates start to come down?