This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile We expect the Canadian economy will exhibit slower growth through 2024 as higher interest rates dampen rate-sensitive activity. Notwithstanding the introduction of new spending in 2023, we forecast general government fiscal deficits will be manageable and debt will be moderate, while tight monetary policy will lead to a gradual decline in inflation. --A federal system of government that delivers coordinated policies, social cohesion, and a resilient economy will continue to underpin the sovereign credit rating on Canada. --As inflation remains elevated, we expect the Bank of Canada (BoC) will hike its policy rate once more before the end of 2023 and begin cutting
