Central banks are approaching the policy crossroads. At some point this year, it seems likely that most advanced economies will shift from the tightening path they had been on and maintaining to an easing path. With inflation slowing in many parts of the world, this is a relatively straightforward process for central banks. Not so in North America. Substantial growth surprises have led to large upward revisions to growth in Canada over the last several months. In the US, this has also come with a series of positive surprises to inflation, while the opposite has been seen in Canada. This has led to a marked shift in ... (full story)