The Bank of Canada risks cutting short the current economic expansion if it shifts its focus from reducing slack in the economy to tamping down inflation, potentially setting the stage for the next cycle of rate cuts. The dilemma for the central bank comes from a situation where inflation is driven not so much by economic strength but by factors, such as supply shortages, that are outside of its control and could lead to more enduring price increases if inflation expectations were to rise. At a policy announcement last month, the BoC became the first central bank from a G7 country to exit quantitative easing and signaled it could begin hiking interest rates in April, three months earlier than previously thought.
— Read on ca.finance.yahoo.com/news/bank-canada-tackles-inflation-investors-165551554.html
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