Bank of Canada Projects: Will Inflation Reach 2% Target in 2024?

by | Dec 21, 2023 | Invest During Inflation | 17 comments

Bank of Canada Projects: Will Inflation Reach 2% Target in 2024?




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The lead story today looks at Bank of Canada Governer Tiff Macklem’s recent comments regarding his interest rate projections for 2024.

Also on today’s episode:

00:00 – Intro
00:25 – Macklem’s Inflation Projection
02:33 – Canada Household Debt Service Ratio
04:37 – Federal Government Housing for Vancouver
05:55 – Blossom Social
06:15 – US Steel Sold to Nippon Steel
07:30 – Roger’s Sugar Strike
08:33 – Coming Up
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The Bank of Canada has recently announced its projections for inflation in 2024, and the question on everyone’s minds is, will it hit the 2% target? The central bank’s forecast for inflation in 2024 is expected to be at or very close to its 2% target, which is a significant milestone for the Canadian economy.

Inflation is the rate at which the general level of prices for goods and services is rising, resulting in a decrease in the purchasing power of money. The Bank of Canada has a target range for inflation of 1% to 3%, with the ideal level being 2%. This target is based on the belief that a moderate level of inflation is necessary for a healthy and growing economy.

The projections for inflation in 2024 are based on a variety of factors, including the expected growth of the Canadian economy, the impact of government fiscal and monetary policies, and global economic conditions. The Bank of Canada takes into account a range of different indicators such as GDP growth, employment rates, and consumer spending habits in order to make its forecasts.

One of the main factors contributing to the expected rise in inflation is the anticipated increase in consumer spending as the economy continues to recover from the COVID-19 pandemic. With more people returning to work and businesses reopening, there is likely to be an increase in demand for goods and services, which could lead to higher prices.

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Another factor that could contribute to the rise in inflation is the impact of government stimulus measures, such as increased government spending and low interest rates. These policies are intended to boost economic growth, but they can also lead to higher inflation if they are not carefully managed.

On the other hand, there are also factors that could put downward pressure on inflation, such as increased competition in the retail sector, which could lead to lower prices for goods and services. Additionally, the ongoing disruptions in global supply chains could also lead to lower prices for imported goods.

Overall, the Bank of Canada’s projections for inflation in 2024 are based on a careful analysis of a wide range of economic indicators, and they represent the most likely outcome given the current state of the economy. However, it is important to recognize that these forecasts are not set in stone, and there are always risks and uncertainties that could impact the actual rate of inflation.

In conclusion, the Bank of Canada’s projections for inflation in 2024 suggest that it is likely to hit or come very close to its 2% target. However, there are a number of factors that could influence the actual rate of inflation, and it will be important to closely monitor economic developments in the coming years to see how these factors play out. Regardless of the final outcome, the Bank of Canada will continue to carefully manage monetary policy in order to achieve its inflation target and promote a stable and healthy economy.

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17 Comments

  1. @jasonhoffman9607

    $115,000,000 / 40,000 =$2875 per home….. in Vancouver?? lol. Can you even build a shed for $2875???

  2. @paulsantori8920

    This channel really should be named after Marc! Lol.

  3. @zedawing

    Why should we listen to this guy who has been wrong about everything.

  4. @not-of-this-world

    If BOC doesn't hike the rate ., inflation will likely creep up again, let's not forget the biggest contributor of inflation now is wage growth, since wage growth hit 10 percent record high in 2020, its been a lot higher than the average of last 20 years, wage growth in October is 5 percent, almost a double of the average b4 the pandemic, that's why the spending spree has never stopped despite higher mortgages and rents. The current interest rate is not high enough to curb inflation

  5. @rookietraveller5660

    Can you please do a video on lithium mining companies since environment minister has announced their 2035 electric vehicles goal?

  6. @timw4369

    Gas is coming down now we need food prices to come down. Those are the two big ones. Housing would be no 3

  7. @niftydom

    Good opportunity for people to consume less sugar.

    Canada will be a vibrant community when Trudeau is gone.

  8. @user-mc2sf2kt8q

    The Russian president said that arrogant and greedy US politicians are loudly munching. By eating each one a piece.

  9. @JoeSmith-pu9hi

    Every crisis is deliberate. Will eastern Canada voters wake up?

  10. @Kevin_Street

    Thank you for this video! And thanks for doing these videos so close to the holidays.

    Negative amortization! Good lord, that would be horrible. Like trying to run in a nightmare, but you move backwards instead. I hope anyone in that situation can get refinancing or something, anything other than paying as much as you can but falling further behind.

    We really do have a housing problem and a debt problem in this country, and they interrelate with each other. I see what you mean about people spending less when they have to put more and more of their income into the mortgage.

  11. @newdeal_99

    People are blind. Inflation is around 3.0% I believe. 0.8% is due to mortgage interest. Base year effects will wipe that out after July making it 2.2% if everything else stays the same. If they cut the rates like the fed predicts then interest costs will be in deflation and cpi will be at 2% by July with them doing basically nothing but cutting rates. The only problem is if energy reinflates and of course the carbon tax increase won't help. The biggest problem is once rates cut real estate will likely reinflate simply because of the huge demand they have forced to the sidelines

  12. @user-lb8bg6kj9m

    Inflation numbers are all lies.

    The real rate of inflation is 3x what is claimed.
    Take the CPI numbers they put out, multiply it by 3.
    That's the real inflation number.

  13. @johnnyboyvan

    They are all liars! Inflation is well beyond their fake numbers. Debt is being indebted for life.

  14. @rickybobby5736

    Its all crashing the whole country is on welfare

  15. @andrewb5412

    Why is it the target of the boc to have 2 % of our wealth stolen annually

  16. @cakeismtrader4227

    DTC great companies what I mean by great companies is the ones that sell the most

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