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David Rosenberg: Tighter immigration targets could tip Bank of Canada rate below 2%

financialpost
Summary
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72% Informative

Justin Trudeau government is finally pumping the brakes on its immigration targets after presiding over the biggest population inflow surge since the post-Second World War boom.

The updated three-year targets have Canada welcoming 390,000 new permanent residents in 2025 , down from 500,000 in 2024 .

The new targets aim to reduce that figure to five per cent , which is a huge shock over a short time frame.

The impact of the new policy on growth is perhaps the most consequential.

Changes in population growth will affect the size of the economic pie as well as its distribution.

A sustained target undershoot and even outright deflation is now a meaningful risk on the horizon for the Bank of Canada .

VR Score

80

Informative language

83

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24

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informal

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English

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59

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not offensive

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short-lived

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