Date Published: September 21, 2021
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This quarter’s economic forecast update reflects a downgrade. The Delta variant’s impact on international supply chains and domestic spending behaviors has slowed the recovery in the near-term and shifted the growth profile into 2022 as the virus ebbs and supply constraints diminish. The economic recovery should proceed uninterrupted. When coupled with persistence in price pressures, central banks will move to gradually withdraw emergency-level policy supports. The Bank of Canada is already proceeding on this front, and we expect the Federal Reserve to begin tapering its asset purchases later this year. By the end of next year, both economies are likely to be encroaching on full employment, opening the window to raise policy rates.
This publication focuses on the numbers, but if you’d like a deeper dive into underlying issues please see our Questions & Answers report published on September 7th.
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|Foreign Exchange Outlook|
|Commodity Price Outlook|
|Canadian Economic Outlook|
|U.S. Economic Outlook|
|Economic Indicators: G7 and Europe|
|Global Economic Outlook|
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