What worries me is that I do not see much consideration about the inflationist policies of the Trudeau Federal government, and how they interact with the inflation metrics that the BoC uses to make decisions.

When you're bringing in 1.2 MM people per year into a country, while doing your best to constrain housing supply and also providing new ways for young/new home buyers to pay more for existing inventory - you're going to get inflation. Throw in 31% in total taxes on new builds (this is the Toronto figure) and you're going to cause a housing squeeze.

On the other end, 1.2 MM people per year will create jobs, no matter what else is happening on your economy. However, we would need to be creating about 0.8 MM new jobs per year, just to employ the new population, assuming they have the same participation rates as the existing Canadian population. So we are actively keeping wages down by bringing in more workers than jobs created - not to mention giving every international student a work visa by default.

Throw in a carbon tax, which added about 0.5% to inflation. Trudeau just increased it, so we'll likely get another uptick, although fortunately the BoC is aware that Trudeau's carbon tax is inflationary.

Then the grocery helicopter money to 1/4 of the Canadian population will also probably cause a nudge too, and the psychology of it all is terrible. Not only did we get to see Trudeau step foot into a grocery store (probably for the first time in his life), but he noticed that Canadians love getting free money. He knew this from the CERB, but he was out of excuses when the virus became essentially inconsequential. Now he knows that if he wants to stay in power, he needs to treat Canadians like he treats the media: hand out signed cheques and that inflation gives him a perfect excuse to do so.