Essential prices still squeezing Canadian household budgets
The reason pump prices have not fallen as sharply as global crude would suggest, Fan explained, is structural.
“There’s more that goes into pump prices than just global oil: refinery margins, retailer margins, seasonality, and exchange rates. We’re seeing a wider than usual gap between refined products and crude oil, but later this year we expect that to moderate alongside oil prices,” she said.
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Bank of Canada holds as weak economy limits its options
Freestone framed the central bank challenge plainly: “We have two challenges at the same time — sticky inflation while consumers feel increasingly stretched. What are central banks going to do about it?”
For mortgage brokers advising clients on rate strategy, Fan’s answer is unambiguous. “Both the Bank of Canada and the Fed are caught in a dilemma — supporting growth while keeping inflation low and steady,” she said.
