Bank of Canada Officials Question Recovery Sustainability

The Bank of Canada's governing council recently met to discuss the country's economic situation. While they agreed that the economy is 'adjusting' to recent shocks, some officials expressed concerns about the sustainability of the recovery and rising inflation expectations.

Policymakers held the policy rate at 2.25% for a sixth consecutive time when they met earlier this month. They argued that the economy was emerging from a period of stalled growth and that energy-driven inflation pressures were receding.