With factors that drove growth now in reverse, sector confronts array of headwinds
The long-awaited decline in food inflation has yet to come
Most forecasters expect the Bank of Canada to raise interest rates again in July
Rising loan losses, growing expenses eating into banks' bottom lines
With inflation at 8.7%, monetary policy committee raised interest rate to 5%
Latest hike came after inflation rose slightly to 4.4% in April
Rates to stay higher for longer amid inflation, 2024 forecast revised down
Latest increase ensures banks have a cushion to absorb rising credit losses
Link between government spending and inflation is complex
Central banks seek sweet spot between fighting inflation and sparking recession