Oh Canada...

Deluded monetary policy is clouding actual economic conditions. But it's not as bleak as many people think. Inflation is not an issue which sets the stage of a forceful monetary policy pivot soon.

The Stage

Today, Statistics Canada released the September 2023 CPI. It came in at 4.0% year over year, at the surface a reacceleration from 3.3% a month earlier. As I will point on below, it’s a figure that vastly overstates the issue, at least from a monetary policy perspective.

Earlier this month, on September 6, the Bank of Canada decided to keep their…