Economist: If not for the Iran issue, Canada should be considering an interest rate cut

Golden Ten Data, April 20 – Douglas Porter, Chief Economist at Bank of Montreal, stated that Canada’s March inflation report could have been worse. Rising energy prices drove the inflation rate up from 1.8% to 2.4%, but it did not reach the expected 2.6% increase. Energy-related components (such as gasoline) pushed inflation higher, while items such as telephone services, car insurance, furniture, and some housing costs declined. Porter explained that this indicates “underlying economic fundamentals are relatively weak.” As a result, underlying inflation appears to be under control. If not for the Iran conflict, the current focus of discussion would likely be the Bank of Canada’s potential interest rate cuts, rather than the possibility of a hike.